In celebration of its 150th anniversary this year, Southern Chemicals, a leading global specialty chemicals company known for its expertise in catalysts and absorbents, has announced an ambitious plan to invest an additional €100 million in China over the next three years. This investment aims to establish a new plant, further expanding the company’s presence and strengthening its position in the Chinese market.
The company has been actively growing in China since the 1970s, with a significant milestone achieved in 2002 when it established a production facility. Since then, Southern Chemicals has expanded rapidly, operating six production sites and enjoying strong sales growth. From 40 million euros in 2006, sales in China have grown to 100 million euros by 2010. In September, the company also set up its regional headquarters in Shanghai, marking a strategic move to better serve the Chinese market.
At the recent 13th China Chemical International Symposium, Günter von Au, Chairman of the Management Board of Southern Chemicals, shared his insights on the company's strategy in China. A Ph.D. in chemical engineering, Mr. von Au emphasized that China is one of the world’s fastest-growing economies and a key market for the company’s long-term development. “Our active participation in China is part of our strategy to occupy key global markets,†he said. “This investment is aimed at further expanding our business and meeting the increasing demand in this dynamic region.â€
Southern Chemicals has made notable progress in several areas. In Panjin, Liaoning, its catalyst plant for chemical fertilizers and syngas has tripled its output within three years. In Shanghai, the company has developed a new polymerization catalyst for polyolefins, which is now being sold globally. It has also made breakthroughs in ammonia catalysts, significantly increasing its customer base. Over the past three years, the company has maintained an annual sales growth rate of 20% in China.
At the symposium, Dr. von Au presented on coal and coal chemical catalysts, highlighting the company’s role in the post-oil era. With advanced technologies in natural gas-to-oil and coal-to-oil catalysts, Southern Chemicals is well-positioned to support China’s growing energy needs. The company is working with Lurgi on major projects such as coal-to-methanol and methanol-to-propylene, and plans to build a new catalyst factory in China.
Dr. von Au also mentioned that Southern Chemicals’ catalysts are widely used in China, with market penetration exceeding 60% in certain sectors. He added that the establishment of the regional headquarters in Shanghai is a key step in capturing the vast potential of the Chinese market and supporting rapid business expansion.
Looking ahead, Southern Chemicals plans to focus on developing catalysts for coal-based alternative fuels and chemicals. It will also expand its adsorbent and additive businesses, building a new pharmaceutical packaging plant near Shanghai and a bentonite processing plant to supply multiple industries. Additionally, the company aims to grow in areas like exhaust gas purification, wastewater treatment, and battery materials.
The ultimate goal of Southern Chemicals is to support China’s efforts in resource protection and environmental sustainability, contributing to the country’s economic development in a sustainable way.
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