Panjin, China — Dynasol Elastomers SA is preparing to begin production at its Chinese joint venture with Shanxi Northern Xing'an Chemical Industry Co. Ltd. in 2015.
Liaoning North Dynasol Synthetic Rubber Co. Ltd. will have the annual capacity for 100,000 metric tonnes of solution styrene-butadiene rubber and thermoplastic rubber.
When the Chinese facility comes online in 2015 — either late first quarter or early second quarter — the firm will have localised production in all three major regions of the world. It produces more than 200,000 tonnes of SSBR, SBS and hydrogenated rubber (SEBS) per year combined at its existing facilities in Altamira, Mexico, and Santander, Spain.
The firm is in the process of populating the Panjin facility with equipment, which is projected to be complete by the end of January 2015. Dynasol General Director Ignacio Marco said the plant represents about a $200 million (€161 million) investment, split evenly between the joint venture partners.
“We knew we had to be in China. China is by far the largest market in the world, and on top of that, it's growing at the highest rate. We were convinced that we needed to install a production plant in China,” Marco said.
“We're in a very strong position because we can follow the customers giving our global capability and adapting to the local requirements of each of the regions.”
The firm plans to serve a variety of industries, such as asphalt modification for paving and roofing in construction, TPE compounds and adhesives for consumables and health care goods, plastic modification in automotive parts and domestic appliances, and vulcanized products for high performance tires and high end sportive footwear.
Initially, the plant will produce at about 50 percent capacity, then slowly increase until it reaches maximum capacity of 100,000 tonnes by mid-2016 or 2017. Employment will start between 155 and 170, but Marco said when full capacity is reached, the plant is projected to employ 200.