Victrex has announced to creation of a joint venture between its subsidiary, Victrex Hong Kong, and Yingkou Xingfu Chemical Company, to build and operate a new PEEK polymer manufacturing facility in Liaoning, China.
Victrex, which will be the majority partner and lead the joint venture, will benefit by further differentiating and complementing its portfolio of PEEK and PAEK grades, in anticipation of a range of significant long-term growth opportunities across several end markets in China.
Victrex already has an established relationship with its joint venture partner through its monomer supply chain, with Yingkou Xinfu having significant experience of developing and operating chemical facilities in China which meet international quality, process, and environmental standards.
The new plant will eventually be capable of producing up to 1,500 tonnes per annum.
Jakob Sigurdsson, Chief Executive of Victrex, said: “This investment is in line with our record of not only investing ahead of demand, but in complementing and further differentiating our range of PEEK and PAEK grade, as well as setting the stage for specific geographical growth, whereby we can capitalise on the significant opportunities in China and the Asia-Pacific region by having a competitive manufacturing presence there.”
“Alongside the Made in China 2025 initiative, some of our increasingly diverse application areas mean our customers require a quality and differentiated PEEK offering.”
“Whilst we already manufacture a range of PEEK and PAEK grade, this will enhance our portfolio, making us even better positioned in a region where we have seen strong growth in recent years and continue to see attractive opportunities, aligned to our know-how and strong technical and application development capabilities.”
“Overall, we believe this is a good entry point to a Chinese manufacturing operation, working with an established partner and offering an attractive returns profile.”