European specialty chemical manufacturers have grabbed the market

After experiencing the Great Recession, European specialty chemicals producers are now very proud of their desire for greater development. These producers survived the "winter" of the recession by implementing strict cost-cutting and cash-based measures during the economic downturn, and began looking for investment opportunities when the economic recovery is a foregone conclusion. However, the market for specialty chemicals in Europe has been slow to recover, and producers have no choice but to turn their attention to emerging markets, especially the Chinese market.

The Swiss company Clariant stated that from the second half of 2011, 90% of the special chemicals for industrial and consumer applications that are expected to be sold in China can be supplied locally. According to Michael Clariant, head of industrial applications business in the Asia Pacific region. Lyon said: “We expect the 50,000 tonne/year ethylene oxide derivative plant in Daya Bay, Guangdong, China, to be put into operation in the second half of 2011. By that time, 90% of the special chemicals we sell in China can be supplied locally.”

Clariant is very active in the specialty chemicals business in China. In September 2009, its set-up of a 22,000 t/y multipurpose specialty chemicals plant in Zhenjiang, Jiangsu, China, is expected to operate at full capacity in the second half of 2011. In 2010, sales revenue of Clariant in China is growing at a double-digit rate, especially in the construction and automotive sectors.

Kemira Finland announced that it will invest 25 million euros (32 million US dollars) in Nanjing to build a special chemical production plant to meet the growing needs of the water treatment market. Kemira will wholly own this project and it is expected to start construction in 2011 and start production in 2012. Noord Kavan, head of Kemira’s Asia Pacific region, said: “The Asian water treatment chemicals market has provided us with great development opportunities, owning a local production facility, and working closely with the company’s R&D center in Shanghai. , It helps us to adjust our products in time to meet local needs."

Investing in specialty chemicals by China is not limited to new factories. Some European specialty chemical manufacturers also enter the Chinese market through other channels. French specialty chemicals company Rhodia’s Novecare Corporation acquired China’s amine and surfactant manufacturer Jiangsu Feixiang Chemical Co., Ltd. at the end of 2010. This transaction helped to expand Rhodia’s market share in Asia. Novecare currently operates three factories in China, two of which produce surfactants.

Pascal Juery, president of Novecare, stated that Flying Chemicals is Novecare’s second-largest acquisition over the years. In 2009, the company acquired McIntyre, a US-based manufacturer of surfactants. Of the two recently acquired companies, Flying Chemicals has a large scale with annual sales revenue of 260 million U.S. dollars, while McIntyre's annual sales revenue is 150 million U.S. dollars. After the acquisition is completed, about a third of Rhodia’s sales will come from Asia.