Victrex plc has announced the creation of a joint venture between its subsidiary, Victrex Hong Kong Limited, and Yingkou Xingfu Chemical Company Limited, to build and operate a new PEEK polymer manufacturing facility in Liaoning, China, subject to certain performance conditions.
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Victrex invests in China PEEK JV
Victrex, which will be the majority partner and JV lead, will benefit by further differentiating and complementing its portfolio of PEEK and PAEK grades, in anticipation of a range of significant long-term growth opportunities.
Victrex already has an established relationship with its partner through its monomer supply chain, with Yingkou Xingfu having significant experience of developing and operating chemical facilities in China.
Today’s announcement builds on Victrex’s recent appointment of a General Manager for China and an increased commercial presence, as well as its strong technical service offering. The investment sets the stage for Victrex to serve some of its regional customers from a local facility and in a more diverse way.
Victrex will also oversee the management of process know-how and intellectual property during development of the polymerisation process.
Jakob Sigurdsson, Chief Executive of Victrex, said: “This investment is in line with our record of not only investing ahead of demand, but in complementing and further differentiating our range of PEEK and PAEK grades, as well as setting the stage for specific geographic growth, whereby we can capitalise on the significant opportunities in China and the Asia Pacific region by having a competitive manufacturing presence there.
“Alongside the Made in China 2025 initiative, some of our increasingly diverse application areas mean our customers require a quality and differentiated PEEK offering. Whilst we already manufacture a range of PEEK and PAEK grades, this will enhance our portfolio, making us even better positioned in a region where we have seen strong growth.”
The investment follows on from Victrex commencing a debottlenecking project at its main Hillhouse UK facilities in FY 2020, which will add up to 1,000 tonnes per annum of nameplate capacity when completed.
This announcement is a class 2 transaction made in requirement with the UK Listing Rules.