Hexagon Polymers to build greenfield compounding unit in China

Hexagon Polymers is investing in a greenfield mixing operation in China. The new facility will initially produce around 12,000 tonnes of rubber compounds per year in one production line, but a second operation line is also planned. This possible future addition would double the capacity.

The plant will be at Jiaonan in Qingdao, China, close to Beijing and Shanghai. Construction is due to start this year and the production start-up is planned for Q1 2007. It is a joint project between Swedish-based Hexagon Polymers AB, its subsidiary Hexagon Polymers Compounding corporate engineering group and Hexagon Metrology Qingdao Co, Ltd. The greenfield operation is established as a wholly foreign-owned enterprise (WFOE).

The company has appointed Liju Yan as managing director of the new Chinese unit. He was formerly Business Manager Asia Pacific for an international operating company. He will initially work with the Hexagon Polymers Compounding project in China and will later on take over the responsibility for the operation of the new production unit

The main market for the rubber compounds produced by Hexagon Polymers is the automotive industry in different rubber goods applications, such as sealing systems, engine mounts, oil seals, hoses and belts.

As the automotive industry in Asia is significantly increasing its production the demand for high-quality, customised compounds is growing rapidly. The new Hexagon Polymers production facility will meet this demand, and is intended to serve the local market.

Hexagon said the new line will be a modern, fully automated rubber mixing line, ensuring consistently high production quality.