New plants in China
15 Aug 2001
Bayer and Shanghai Chlor Alkali Chemicals have formed a joint venture to build a production plant for Makrolon polycarbonate at the Shanghai Chemical Industry Park in Caojing, China.
Along with the polycarbonate plant, facilities for the production of bisphenol A and compounding products as well as the necessary infrastructure will be built.
According to the contract, Bayer will provide 90% of the capital for the joint venture, which is called 'Bayer Polymers Shanghai'. Shanghai Chlor Alkali will hold a 10% stake in the company.
The total investment is estimated at US$450 million. In the first phase, the facility will manufacture 50,000 tons per year (tpa) of the heat - and impact resistant - thermoplastic. In the second phase, the capacity will be doubled to 100,000 tpa.
Construction of the facilities to produce the precursor bisphenol A and the production of compounds (20,000 tons) will start in the first phase.
Speaking at the ceremony, Dr. Udo Oels, Bayer's Board Member and Board representative for China said that the site, with its interlinked companies and a total investment of US$3.1 billion, represented the most significant single investment in the history of Bayer.
With sales of EUR 740 million in 2000 (US$ 690 million), China has been Bayer's second largest market in Asia since 1998.
