Victrex To Invest GPB32 Million In Chinese Polymer Joint-Venture

(Alliance News) - Polymer maker Victrex PLC on Monday said it will partner with Chinese firm ...

Alliance News 13 January, 2020 | 11:05AM
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(Alliance News) - Polymer maker Victrex PLC on Monday said it will partner with Chinese firm Yingkou Xingfu Chemical Co Ltd to build a manufacturing unit in Liaoning, in the north east of China.

Victrex, through its Hong Kong subsidiary, will be the 75% owner of the joint-venture, which aims to build a polyether ether ketone, or PEEK, polymer manufacturing facility. Victrex's PEEK polymers can be used in medical devices, and in the aerospace and automotive industries.

The company said it will invest GBP32 million in the partnership, and the facility will be capable of producing 1,500 tonnes of polymers per year.

Victrex said the joint-venture will offer the firm a "range of significant long-term growth opportunities across several end markets in China".

Chief Executive Jakob Sigurdsson added: "Overall, we believe this is a good entry point to a China manufacturing operation, working with an established partner and offering an attractive returns profile."

It also comes after the Made in China 2025 initiative, unveiled by the country in 2015, which aims to increase China's presence as a competitive global player in the manufacturing industry by 2025.

Output of Chinese-produced PEEK polymers is expected to rise as a result, Victrex said.

The company said: "Victrex already has an established relationship with its joint-venture partner through its monomer supply chain, with Yingkou Xingfu having significant experience of developing and operating chemical facilities in China which meet international quality, process and environmental standards."

Shares in the company were 0.2% higher at 2,468.00 pence each in London on Monday morning.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Victrex PLC 1,970.00 GBX -0.25

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