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Victrex Hong Kong invested in a joint venture with Yingkou Xingfu Chemical Company to establish a PEEK polymer manufacturing facility in Liaoning, China.
Victrex recently appointed a General Manager for China and increased its commercial presence there, as well as service offerings at its existing Technical Centre in Shanghai. This new investment allows Victrex to serve regional customers from a local facility and in a more diverse way. Victrex will oversee the management of process know-how and intellectual property during development of the polymerization process.
Victrex’s share of the investment is expected to total £32 million in cash (~US $42 million).
The new plant, slated to open in 2022, will eventually be able to produce up to 1,500 metric tons per annum. Establishing a new PEEK polymer plant in China is in line with Victrex’s record of investing in capacity ahead of demand, with an expectation that future capacity increases will be more gradual, rather than larger multi-year investments.
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 grades, as well as setting the stage for specific geographic growth, whereby we can capitalize 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. While we already manufacture a range of PEEK and PAEK grades, 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 China manufacturing operation, working with an established partner and offering an attractive returns profile.”
