Business
Joint Venture
Joint Venture.
About this update from Victrex Plc
[{"type":"text","content":"\n \nRNS Number : 5673Z Victrex PLC 13 January 2020 \n\n \n13 January 2020\nVictrex plc\nInvestment to create a joint-venture for PEEK manufacture in China\nDevelopment of PEEK polymer capacity in China sets the stage for further regional growth opportunities and further differentiates Victrex's range of PEEK & PAEK grades\nVictrex plc today announces 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, including finalising land purchase and permit applications. Victrex, which will be the majority partner and lead the joint-venture, 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 across several end markets in China, as well as aligning with China's 'Made in China 2025' initiative, where specifying domestically produced PEEK in certain applications is expected to gain momentum. \nVictrex 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.\nToday'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 to customers, which includes its existing Technical Centre in Shanghai. 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.\nVictrex's share of the overall investment, the majority of which comprises capital investment during construction, is expected to total £32m funded in cash, with approximately £28m of capital expenditure and £4m of start-up costs, with commissioning of the facility anticipated in early 2022. The new plant will eventually be capable of producing up to 1,500 tonnes* per annum. Establishing a new PEEK polymer pla...