MOSCOW (MRC) -- Solvay SA, the 150-year-old company that’s moving from commodity chemicals to specialty materials and additives, will expand a high-performance plastics plant in India to cope with demand from smartphone and aircraft makers, said the producer in its press-release.
Production of polyether ether ketone polymer resins, known as PEEK, will increase 25 percent at the Panoli plant in the state of Gujarat, the Brussels-based company said today.
Chief Executive Officer Jean-Pierre Clamadieu’s strategy involves focusing on higher-margin offerings amid a plan to exit cheaper polyvinyl chloride plastics through a joint venture. Demand for PEEK and related compounds is growing at about 8 percent to 10 percent annually as handset and tablet makers need heat- and chemical-resistant plastics to fit more technology into a smaller space.
“Today’s announcement to debottleneck capacity shows we are determined to keep pace with this growing demand worldwide,” Augusto Di Donfrancesco, Solvay’s head of specialty polymers, said in a statement.
Solvay’s increase in capacity is a further challenge to market leader Victrex Plc (VCT), carved out of Imperial Chemical Industries, and Evonik Industries AG. The three companies are the main suppliers of PEEK. Victrex reported a gross margin of 64 percent in the first half, with revenue jumping 13 percent.
Solvay is an international chemicals and plastics company. In 2011, Solvay acquired Rhodia for approximately EUR 3.4 billion. Rhodia is one of the three sectors of activities of Solvay. Rhodia is a world leader in the development and production of specialty chemicals, and partner of major players in the automotive, electronics, flavors and fragrances, health, personal and home care markets, consumer goods and industrial markets.
MRC