Construction of the new facility in Nanjing is expected to start next year with the plant expected to be fully operational by 2013.
"China is the main growth engine for the Asia-Pacific region, and at this strategic location our new plant will greatly support our local customers there,” explained Miguel Mantas, executive board member for marketing and sales.
Facility’s first steps
“In a first step our Nanjing plant will produce Oxea's specialty esters, phthalate-free plasticizers and other oxo derivatives. However, we have allowed space for future expansion and new investments," he added.
Oxo derivatives are key ingredients that are used in nearly all sectors of China's economy according to Oxea, including in cosmetics and personal care products, amongst others.
The company hopes this investment will establish a new production platform for Oxea in China and is part of its overall strategy to expand into growth regions.
"The new plant will enable Oxea to better serve the steadily growing high demand for our products in China and Asia and at the same time further strengthen Oxea's leading global market position," Mantas continued.
Dr Martina Flöel, spokesperson for the executive board added that by expanding the production of these derivatives in Asia, it will hopefully become more easily accessible within the region.
The time is right for further expansion
Production expansion is a key strategy for the chemical company having built a new production facility in Germany earlier this year, and expanding on its existing facility twice the year before.
"Since the beginning of Oxea in 2007, we have invested significantly into new capacities, applied innovative process optimizations and continuously developed our specialty chemicals expertise,” added Flöel.
“Now, the time is right to implement the next important strategic step: the extension of our geographic reach and to expand into growth markets," she added.