Methylamines Plant to Be Company's First Chemicals Production Investment in China
LEHIGH VALLEY, Pa. (May 7, 1998) — Air Products and Chemicals, Inc. (NYSE:APD) and Shanghai Hua Yi (Group) Company announced they are proceeding with the feasibility study for a manufacturing and marketing joint venture to produce methylamines at a site in Shanghai, People's Republic of China.
The companies' respective subsidiaries, Air Products and Chemicals (China) Investment Co., Ltd. and Shanghai Zhong Yuan Chemical Co., Ltd., plan to build, own and operate a new, world scale plant at the Shanghai Wusong Chemical Complex in the Baoshan District along the Wenzao River. Construction is targeted to begin in 1999, with the plant onstream in the year 2001.
The facility initially will produce 35,000-40,000 metric tons per year of methylamines, but it will be designed so its capacity can be doubled in the future to meet anticipated increased demand for both the Chinese and export markets in Asia.
The plant—Air Products' first chemicals production investment in China—will supply key raw materials for the production of acrylic spinning solvents, animal feed supplements, agricultural chemicals, surfactants, water treatment chemicals and other fine chemicals for customers principally in China. While much of the capacity from the first phase of the venture is expected to be committed under long-term contracts with other multinational companies at the site, there will be sufficient capacity to serve the Shanghai and Nanjing markets as well as some export markets.
"This manufacturing joint venture will further strengthen our position as a worldwide supplier of amines and provide us with a platform for further investment in the region," said Robert E. Gadomski, executive vice president of Air Products' Chemicals Group.
He pointed out that methylamines are a key raw material building block for developing economies and that the company currently sells a broad range of chemical products to industries in China, including industrial amines, polyurethane catalysts and intermediates, surfactants, epoxy additives, and emulsions. He added, "We will continue to look for other investment opportunities to further expand our strategic chemicals businesses in Shanghai."
Frederick W. Fisher, Air Products' Vice President and General Manager–Chemicals Asia, added, "This will be our third Chemicals Group manufacturing investment in Asia and it will accelerate our revenue and market share growth in the region while allowing us to increase our competitiveness and customer service levels for this important and strategic global business." Mr. Fisher pointed out that this latest venture in China complements the company's strong existing Asian service capabilities for its performance chemicals and polymer chemicals businesses. Currently, Air Products serves its chemical customers in the Asia-Pacific region through sales offices in Tokyo, Japan; Singapore; Sydney, Australia; and Seoul, Korea; and representative offices in Hong Kong, Shanghai and Beijing, PRC. The company also has polymer emulsion manufacturing facilities in Bucheon and Ulsan, Korea.
Air Products is one of the world's largest merchant suppliers of methyl and higher amines. It has three world-scale plants operating in the United States at St. Gabriel, La.; Pensacola, Fla.; and Wichita, Kan. The company recently acquired the business assets of Quimica da Bahia in Brazil, and ICI's worldwide ethyl and higher amines business, and its methylamines and derivatives business, including a production plant in Billingham, England. |
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