Chinese clamp-down impacting rubber chemicals sector
Hanover, Germany – Moves by the Beijing government to tackle the country’s pollution crisis could lead to a major shake-out within the Chinese chemical sector, according to Dr Anno Borkowsky head of Rhein Chemie Additives, a business unit of Lanxess.
“In China, the government is now finally taking a real stance against the pollution threat. There will for sure be a lot of companies disappearing,” Borkowsky told ERJ at the recent Tire Technology Expo 2016 in Hanover.*
The clamp-down in China presents an opportunity for Western chemicals suppliers, as their competitors could disappear, but also holds risks due to the potential loss of important suppliers.
Another factor is that China is now very strict about not allowing companies to be swamped in debt, added Borkowsky.
Rhein Chemie Additives, he said, is managing the situation: auditing suppliers to see which companies will be able to stay in business.
“This is of real high concern to us,” he said. “These are rubber chemical suppliers that supply our broad portfolio… and this is something we have to watch carefully, especially in the additives business.”
*Read the full interview on a wide range of developments impacting Rhein Chemie in the March/April issue of ERJ magazine
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