Construction of a PEEK Polymer Plant
Joint Venture between Victrex Subsidiary and Yingkou Xingfu Chemical
Victrex plc, Thornton Cleveleys, UK, will create a joint-venture between its subsidiary, Victrex Hong Kong Limited, and Yingkou Xingfu Chemical Company Limited, to build and operate a new PEEK polymer manufacturing facility in Liaoning, China, subject to certain performance conditions, including finalizing land purchase and permit applications.
As stated in a press release 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, as well as aligning with China’s ‘Made in China 2025’ initiative, where specifying domestically produced PEEK in certain applications is expected to gain momentum.
Victrex already has an established relationship with its joint-venture partner through its monomer supply chain, with Yingkou Xingfu having significant experience of developing and operating chemical facilities in China which meet international quality, process and environmental standards.
The announcement builds on Victrex’s recent appointment of a General Manager for China and an increased commercial presence, as well as its strong technical service offering to customers, which includes its existing Technical Center in Shanghai. The investment sets the stage for Victrex to serve some of its regional customers from a local facility and in a more diverse way. The company will also oversee the management of process know-how and intellectual property during development of the polymerization process.
Investment and Start-up
Victrex’s share of the overall investment, the majority of which comprises capital investment during construction, is expected to total £ 32m funded in cash, with approximately £ 28m of capital expenditure and £ 4m of start-up costs, with commissioning of the facility anticipated in early 2022. The new plant will eventually be capable of producing up to 1500 t/a.
The joint venture will establish Victrex Hong Kong Ltd as the majority partner with a 75% share, with leadership being assumed by Victrex once the facility is operational. The investment follows on from Victrex commencing a debottlenecking project at its main Hillhouse UK facilities in FY 2020, which will add up to 1000 t/a of nameplate capacity when completed.
Victrex Europa GmbH
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