Newsletter

Victrex plc apprises of 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 finalizing 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. This is 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. The joint-venture will establish Victrex Hong Kong Ltd. as the majority partner with a 75% share, with leadership being assumed by Victrex once the facility is operational.

This move 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 Center in Shanghai. Victrex’s share of the overall investment, the majority of which comprises capital investment during construction, is expected to total 32 million GBP funded in cash, with approximately 28 million GBP of capital expenditure and 4 million GBP 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 tons per annum.

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