Expanding local production capacity and achieving comprehensive development – Clariant executives discuss development strategy in China

On December 15, 2022, Clariant invested CHF 80 million at its Daya Bay production site in Guangdong for a new high-performance surfactant project and an expansion of a high-performance halogen-free flame retardant new materials project, with the aim of establishing a new Clariant-based global healthcare business hub
.
At the groundbreaking ceremony, Clariant executives explained its investment strategy
in the Chinese market.

Continue to increase investment

Fulfilling our commitments in China

In 2011, Clariant established an ethylene oxide derivatives plant in Daya Bay, specializing in the production of ethylene oxide derivatives for industrial and specialty consumer goods, supporting industrial development
in China and throughout Asia.

In recent years, Clariant has continued to increase its investment in China
.
In 2020, the company's new Catofin catalyst plant in Dushan Port in Pinghu, Jiaxing, was commissioned in the second quarter of 2022
.
In 2021, the first Exolit flame retardant plant in Daya Bay will come on stream
in 2023.
Construction of the second Exolit flame retardant line and a new care chemicals production facility will be completed
by the end of 2024.
The three projects in Daya Bay have a total investment of more than CHF
180 million.

Clariant CEO Calder, said: "The construction of these projects demonstrates Clariant's strong commitment
to 'in China, for China'.
This series of investments will help the company achieve its ambitious goal of increasing Clariant's share of global sales in China from the current 10 percent to 14 percent
by 2025.
”

Andrew Wang, President of Clariant China and Asia Pacific, emphasized: "The Chinese market is playing a unique role
as Clariant's growth engine.
With the new Clariant Verbund and China Innovation Center, Clariant is accelerating its product development process to meet the specific needs
of its customers in China with innovative and sustainable solutions.
He believes that by strengthening its innovation capabilities and production footprint in China, Clariant's locally produced products will increase from the current 35% to 50% by 2025, further strengthening Daya Bay's position
as Clariant's flagship production base in China.

Strengthen base construction

Achieve comprehensive development

"Daya Bay will be an integrated manufacturing site that will further shorten the distance to customers and provide them with more innovative and sustainable products that meet local and global needs
," said Goodin Wan, Global President, Clariant Care Chemicals.
”

Daya Bay is home
to Clariant's first ethylene oxide derivatives plant in Asia.
Clariant will take advantage of the plant's proximity as a major manufacturing site to upgrade it to a multi-purpose plant and ethylene oxide derivatives production site
.
Miao Zhigang, Senior Vice President, Industrial Applications of Clariant's Care Chemicals business unit, said: "Clariant is optimistic about the prospects of the Chinese market, which is the company's firm commitment
to further development in Huizhou.
He explained that Clariant's Daya Bay plant has been committed to the development of China's pharmaceutical industry since 2013, obtaining a drug production license in 2016, and polyethylene glycol 3350 API passed the Good Manufacturing Practice (GMP) compliance inspection
in October 2022.

In addition to APIs, Clariant is expanding
its capacity for care chemicals in Daya Bay.
Miao Zhigang said that the company has introduced new technology production lines such as innovative mild surfactants and green polymers for home care from around the world to help
China's consumption upgrade and a better life.
With the transformation of traditional industries such as coatings and lubricants, industrial coatings shift to water-based types, lubricants are fully synthetic, Clariant specialty surfactants and high-performance additives adapt to mainstream trends, and play a "small body, big power" role in these traditional industries to support the green transformation and healthy development
of the industry.

Expansion of local production capacity

Innovative solutions

With the construction of the second production line of Exolit OP, a high-performance halogen-free flame retardant, Clariant has built a local production capacity at the Daya Bay site and realized the localization of flame retardant production
.

Wang Anting said: "It currently includes Exolit 100% of the halogen-free flame retardant products, including OP, are imported from Germany, so Clariant decided to produce
it locally.
This is also highly consistent with
China's Sustainable Development Goals.
China encourages the development of new energy vehicles and needs halogen-free flame retardant products
.
Through local manufacturing, Clariant can support
China's development in the field of new energy vehicles.
”

Liu Bin, Sales Director Greater China, Clariant's Additives business, added that Clariant's team of more than 60 people produces Clariant flame retardants in Daya Bay to meet the increasing demand for electrification and sustainability
.
Clariant's Verbund Campus in Shanghai will provide the technical expertise and R&D support to help customers apply and adapt to meet the growing safety regulations and technical performance requirements
in electric vehicles, 5G communications and other areas.

Liu Bin emphasized that the new second Exolit The OP halogen-free flame retardant line will further expand with innovative, sustainable solutions and expertise to meet the rapidly growing needs
of Chinese and Asian component manufacturers in the fields of electric vehicles, E&E, transportation, 5G communications, infrastructure and home appliances.
At the same time, Clariant will accelerate the provision of flame retardant solutions to customers in China to better serve China's fast-growing electrical and electronic equipment industry
.