With China and its partners building more multilateral trading platforms to boost the world's economic growth, Lubrizol Corp, the United States-based specialty chemical product manufacturer, pledged to invest more in its manufacturing and innovation businesses in China during the country's 14th Five-Year Plan (2021-25) period, said a senior executive.
China's participation in regional free trade agreements such as the Regional Comprehensive Economic Partnership demonstrates the country's determination to promote a wider, broader and deeper opening-up to the outside world, said CK Tan, Lubrizol's vice-president for the Asia Pacific region.
"The expansion of our presence and capabilities in China will complement our global network and create stronger regional connections with our customers to further drive our growth in the local market," he said.
According to its plan, Lubrizol will continue its investment to augment its capacity, commercial and technical capabilities to serve increasing market needs in China, especially in the areas of the transportation, industrial and consumer goods markets, and prepare for future growth.
In addition to increasing production capacity this year for engineered polymers that are widely used in sports shoes and apparel, as well as surface protection in many applications, the Ohio-headquartered group is also preparing to establish a new innovation center in China.
Tan said the role of the new facility will be supporting innovation and testing for additive technologies and products to serve the growing demand for higher-quality lubricants, which help improve efficiency, lower emissions and increase equipment life in transportation and industrial applications, including traditional and electric vehicles.
Despite the impact of COVID-19, the company added a new pilot line for high-performance coating and personal care products in China last year, providing essential ingredients to enable the better performance of inks and coatings, sanitizing products and skin creams, among other products.
"Greater market demands are emerging as the country is striving to realize a higher level of urbanization, stronger domestic market and sustainable development," Tan added.
Supported by a favorable policy environment, the chemical business in China remains attractive for foreign companies despite the impact of COVID-19, due to the huge consumption potential of the domestic market, said Zhao Ying, a researcher at the Beijing-based Institute of Industrial Economics, which is affiliated with the Chinese Academy of Social Sciences.
"Economic development and growth in per capita income will drive China's growth in chemical demand, and China will lead global expansion in the advanced material, new energy vehicle and high-end coating sectors," Zhao added.
Source: China Daily
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