DÜSSELDORF, GERMANY (Aug. 29, 12:45 p.m. ET) — German additive supplier Henkel AG & Co. is investing 50 million euros ($72.5 million) to build what it says is the world's largest additive plant, in Shanghai, to meet demand in China and the Asia-Pacific region.
The facility will have an annual production capacity of 428,000 metric tons, and is expected to be operational by the end of 2012.
“This investment is in line with our priority to expand our business in the emerging markets,” said CEO Kasper Rorsted, in a statement. “China has been an important growth engine for Henkel, and we are confident that the plant will greatly enhance Henkel's growth potential in the country.”
The Düsseldorf-based company, which supplies additives for plastic materials among other industries, said it generates 42 percent of its sales from emerging markets and has 53 percent of its employees in those countries.
The 150,000 square meter plant, in the Shanghai Chemical Industry Park, will consolidate Henkel's other Chinese additive manufacturing facilities, and allow the firm to make both efficiency and environmental gains in areas such as energy and water consumption and carbon emissions, it said.
The company said the factory will employ 600. It broke ground on the facility Aug. 22.