Chemtura Corporation Dedicates New Production Plant for Petroleum Additives and Urethanes in Nantong, China
NANTONG, China--(BUSINESS WIRE)--Supporting its commitment to customers in China and the greater Asia-Pacific region, Chemtura Corporation (NYSE: CHMT) (Euronext: CHMT), a leading global specialty chemicals company based in Philadelphia, Pennsylvania, today held the grand opening of its new multipurpose manufacturing facility in the Nantong Economic and Technological Development Area.
“A major emphasis throughout the project has been on safety”
“Chemtura aims to create value for customers and other stakeholders by supporting its business growth with increased manufacturing capacity in faster-growing regions,” said Craig A. Rogerson, Chemtura Chairman, President and Chief Executive Officer. “The completion and opening of our Nantong facility underscores this commitment and allows us to work closer with customers, bring them innovative solutions, and help them to be more competitive and successful.”
The state-of-the-art facility, located in Jiangsu Province 80 miles northwest of Shanghai, will consist of three production units supporting Chemtura’s Industrial Performance Products segment, which includes petroleum additive and urethane products. Rogerson said, “It is our intention and hope that this will also be the footprint that the other businesses in our portfolio will use when they come into the region.”
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 complex grease.
“Local manufacturing capacity for synthetic lubricants is required for the business to respond to the market’s demand for shorter lead times,” said Simon Medley, Senior Vice President of Industrial Performance Products. “Installation of grease capacity in China provides Chemtura’s customers with a more secure global supply capability, and places capacity in the region with the highest growth rate.”
The first unit began producing calcium sulfonate grease in August, with production ramping up to commercial scale in the fourth quarter this year.
Growth in the urethanes division, including its low-free (LF) prepolymer urethanes, is driven by the commercialization of Chemtura’s high-performance, greener Adiprene® Duracast™ product line coupled with increasing global and regional demand for its LF products. Additional LF prepolymer manufacturing capacity in China will allow Chemtura to continue to grow its 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.
The new plant features administrative and maintenance buildings, utilities, a centralized control room, and quality control labs. Construction began in March 2012.
“A major emphasis throughout the project has been on safety,” said Niu Limin, Chemtura Nantong Plant Manager. “We conducted extensive safety training throughout the project to focus on safe construction, safe start-up, and safe operation. Through midyear 2013, nearly 1.7 million person-hours of work were performed with no recordable injuries – a significant safety achievement.”
This facility, which was approved in 2011, stands as Chemtura’s largest single investment since the company’s formation in 2005 and the central site for manufacturing in Asia-Pacific, specifically in China.
Chemtura Corporation, with 2012 sales of $2.6 billion,1 is a global manufacturer and marketer of specialty chemicals, agrochemicals and pool, spa and home care products. Additional information concerning Chemtura is available at www.Chemtura.com.
1 2012 net sales of $2.6 billion reflects discontinued operations treatment for the completed sale of the plastic antioxidants & UV stabilizers business.
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.
Factors that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements include, but are not limited to:
- Our ability to implement our growth strategies in the faster growing regions;
- Completing the construction of each of the manufacturing units at our Nantong facility on time and within expected cost;
- Successfully completing the commission of each manufacturing unit at our Nantong facility and obtaining customer certifications of the products;
- Ramping up customer sales at a rate to utilize manufacturing capacity at our Nantong facility as it becomes available and absorbing the additional fixed costs incurred in operating the facility;
- Environmental, health and safety regulation matters;
- Exchange rate and other currency risks;
- Operating risks at our production facilities;
- Our ability to protect our patents or other intellectual property rights; and
- Other risks and uncertainties described in our filings with the Securities and Exchange Commission including Item 1A. Risk Factors in our Annual Report on Form 10-K.
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