New DyStar facility paves the way for further growth in China

Citation

(2005), "New DyStar facility paves the way for further growth in China", Pigment & Resin Technology, Vol. 34 No. 4. https://doi.org/10.1108/prt.2005.12934dab.021

New DyStar facility paves the way for further growth in China

New DyStar facility paves the way for further growth in China

DyStar is investing around USD 55 million in a new textile dyes facility in Nanjing to extend its production base in China and step up its focus on this key growth market. Situated about 300 km north-west of Shanghai, Nanjing is the capital of Jiangsu Province, a key area for textile production. It will be DyStar's third production location in China, alongside Wuxi, where capacity was tripled last year, and Qingdao.

Speaking at the official ground- breaking ceremony on 10 March, which was attended by representatives of the regional government, Nanjing Chemical and Industrial Park (NCIP), project partners, customers and employees, DyStar's CEO Dr Clemens Willée stressed: “This new production site will speed up our growth in China. At the same time it will strengthen our international competitiveness and boost our market leadership.

This investment is a clear sign that DyStar is continuing to invest in its core business and will remain a reliable partner for the textile industry in the long term”.

Investing in the world's fastest growing market

China's role as a textile exporter has increased rapidly in recent years and it is now the world's biggest textile producing country. Statistics indicate that it is likely to account for 40 per cent of global output of textiles in the medium term. DyStar's new production site in Nanjing is a response to the growing demand for quality dyes in this country and increases DyStar's production base in China. Phil Norment, President Portfolio Operations at DyStar's parent company Platinum Equity: “China is the world's fastest growing market for the textile industry. We see this investment as a very important step for the future of DyStar”.

DyStar already has more than 300 employees in China and the new facility in Nanjing will create another 400 jobs. DyStar has central offices in Shanghai and Hong Kong, production sites in Wuxi and Qingdao and sales offices in all major textile centres in China.

At the new production complex in Nanjing DyStar will produce dyes for cellulosic and synthetic fibres. In-built flexibility will permit the manufacture of other dyes and extension of the infrastructure in line with requirements. That means DyStar will be able to respond quickly to rising demand in China. Start-up of first plants is scheduled for the first half of 2006.

The company chose Nanjing from more than ten possible locations because of its excellent infrastructure and the strong support from local officials. Dr Willée: “We would like to thank the authorities in Nanjing, the managers of the NCIP and all our other partners in this project for their excellent support. I am convinced that together we will make this project a success”.