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.
“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.
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.
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.
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.
Copyright Business Wire 2013