Further Expands Carbon Black Capacity in China

While construction of the third line of its carbon black plant

While construction of the third line of its carbon black plant in Qingdao proceeds, Degussa has begun a new project to further expand capacity with a fourth production line. With this investment Degussa AG, Dusseldorf, will significantly increase manufacturing capacity in China: “After completion of our current expansion projects we will be able to produce more than 100,000 metric tons of carbon black” says Robert Wissner, head of Degussa’s Fillers & Pigments Business Unit. The plant is located in the Shandong province, one of the most dynamic economic regions of China and is managed by Qingdao Degussa Chemical Company, Ltd. (QDCC), a joint venture of Degussa AG, Jiaozhou Municipality Fiscal Center and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH. Degussa is a leader in carbon black with strong positions in all critical global markets. The newly added production capacities will further strengthen its position as one of the leading suppliers to the Chinese market.

“Demand is booming for high quality grades of carbon black. At QDCC we produce these products for our customers in the rubber and tire industries which they need to meet the international quality standards their customers expect”, according to Wissner as he explains the rationale of Degussa’s decision. The Qingdao plant is located close to major customers and to one of the largest ports in China. It is also well connected to a state-of-the-art traffic infrastructure that provides excellent logistics for supporting the dynamic growth of the Chinese rubber industry.

The Chinese tire and rubber markets are changing dramatically. China has now become the world’s largest market for truck tires and the third largest for all tires. Growing investments of the major international car and tire manufacturers and the massive expansion of China’s network of roads and highways are fueling this leap in demand.

Degussa has been producing specialty chemicals in China since 1988, has over 18 companies in the country with production facilities in Beijing, Guangzhou, Nanning, Qingdao, Shanghai and Hong Kong. Its broad range of products – from carbon blacks, amino acids, polyurethane foam additives, high-performance water treatment chemicals, construction chemicals to initiators used in the production of plastics – is supplying not only customers in China but also in the Asia-Pacific region. Degussa (China) Co., Ltd., Beijing the holding company of Degussa’s activities is supporting the group’s business units through an efficient and professional platform of services. Today Degussa employs over 1,300 people in PRC and generates sales of about 280 million € in 2003.