SHANGHAI - The world's largest listed plastic adhesives manufacturer will invest between $50 million and $60 million in China over the next two years, three times the company's current investment, said a top executive from the US-based company.
"The investment over the next 18 months will exceed the total investment of the previous 28 years since 1982," said Craig A. Rogerson, chairman, president and chief executive officer of Chemtura Corporation.
"We are really ramping up our investment in China to make sure that we are in a position to take advantage of the growth here," he said.
The specialty chemical maker's total investment in China is currently $20 million, and it will further invest up to three times that amount during the next two years.
In order to significantly expand the company's presence in China, Chemtura is looking for various investment opportunities, including building their own plants and finding acquisition and joint venture possibilities.
By the end of the first quarter, one or more announcements will be made regarding opportunities in the Chinese industrial sector, Rogerson revealed. Chemtura operates five industrial businesses, plus a crop protection business, and a consumer business dealing with pool and spa chemicals worldwide.
The company estimated its global sales approached $3 billion in 2010. The Asia-Pacific region produced about 15 percent of that revenue, and the company expects the region to account for one-third of total revenue by 2014.
China is Chemtura's largest and fastest-growing market in the Asia-Pacific region, said Rogerson.
The growth will come from capital expansion in existing plants and acquisitions. Chemtura is trying to buy large sites, and is creating a business development group to look for opportunities in the region, Rogerson said.
The company had growth of around 20 percent in 2010 in China, and it expects to see the same growth momentum in 2011.
In early 2006, the company relocated its Asia-Pacific headquarters from Singapore and Hong Kong to Shanghai. And in May 2010, it set up its Asia-Pacific application development center in Nanjing with an extra investment of $3 million.
Chemtura chose Nanjing mainly because of the existing facilities, good access to talent from universities and close proximity to its customers, Rogerson said.
The Nanjing location currently has 15 laboratories, which play a number of roles, including application development, personnel training, customer services, distribution, and quality control.
Chemtura was formed in July 2005 from the merger of Crompton Corp and Great Lakes Chemical Corp.
