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Chemtura Plans to Build Multi-purpose Manufacturing Facility in China to Support its Urethanes Business

Published on 2011-06-07. Author : SpecialChem

Chemtura Corporation, a leading global specialty chemicals company, announced plans to build a new multi-purpose manufacturing facility in Nantong, China, to support its growth strategy.

"This project lays the groundwork for growth through investment in the world's most rapidly expanding market. It will enhance our ability to satisfy customer demand in China and the wider Asia-Pacific region," said Craig A. Rogerson, Chemtura's chairman, president, and chief executive officer.

As previously disclosed, Chemtura's goal is to create value for customers and other stakeholders by growing its business with new manufacturing capacity in rapidly growing regions, among other initiatives. The Nantong facility is expected to initially serve Chemtura's Petroleum Additives and Urethanes businesses, and is expected to provide sufficient additional capacity for other Chemtura businesses.

This planned investment will support the growth of Chemtura's Urethanes business, including its low-free (LF) prepolymer urethanes. This growth is driven by the commercialization of our high-performance, greener Adiprene® Duracast™ product line coupled with increasing global and regional demand for our LF products.

"Additional LF prepolymer manufacturing capacity in China would allow us to continue to grow our most advanced product lines and places capacity in a region with strong demand growth, while preserving existing capacity elsewhere to continue supplying customers in other regions," said Matthew Hellstern, president, Urethanes.

The Petroleum Additives business requires local manufacturing and storage capabilities for some of its product lines in order to meet customer demand. These include synthetic finished fluids (refrigeration lubricants, air compressor lubricants and gear oils), and calcium sulfonate grease.

"Local manufacturing capacity for synthetic lubricants is required for the business to respond to the market's demand for shorter lead times," said Sean O'Connor, president, Petroleum Additives. "Installation of grease capacity in China would provide our customers with a more secure global supply capability, and place capacity in the region with the highest growth rate."

In addition to the planned development of local manufacturing capacity, Chemtura plans to build global scale with sales representation, technical development centers, joint ventures and bolt-on acquisitions. "We will further empower our regional teams to serve their growing customer base with robust service functions and technical support capabilities," Rogerson added.

About Chemtura Corporation

Chemtura Corporation, with 2010 sales of $2.8 billion, is a global manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products.

Forward-looking statements

This document includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities and Exchange Act of 1934, as amended. These forward-looking statements are identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will" and similar expressions and include references to assumptions and relate to our future prospects, developments and business strategies.

These statements are based on our estimates and assumptions and on currently available information. Our forward-looking statements include information concerning possible or assumed future results of operations, and our actual results may differ significantly from the results discussed. Forward-looking information is intended to reflect opinions as of the date this press release was issued. We undertake no duty to update any forward-looking statements to conform the statements to actual results or changes in our operations.

Source: Chemtura Corporation


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