German specialty additives company BYK opened a new plant in Shanghai with annual production capacity of 500 metric tons, adding flexible local manufacturing capacity as demand for specialty additives grows in China. The facility will produce silicone-based and silicone-free additives as well as wax additives for industrial applications.
The compact plant is part of BYK’s existing Shanghai operation, which includes production, research and development, logistics and technical services. The Shanghai site also serves as BYK’s distribution center for China, with locally manufactured and imported products supplied from the facility.
The investment adds to a much larger manufacturing presence that BYK has been building in China. In 2022, the company completed a second production facility at Shanghai Chemical Industry Park with initial capacity of 4,750 tons per year. BYK said the site could eventually expand beyond 20,000 t/y, with a focus on silicone additives.
BYK described China as a decisive growth market for its business over the medium and long term. China is a major manufacturing center for automotive, industrial, electronics and consumer products, creating demand for the coatings, plastics, adhesives, metalworking fluids and lubricants that use specialty additives.
Germany is home to several major suppliers of chemicals used in lubricant and industrial formulations. BASF produces lubricant additives including antioxidants, anti-wear and extreme-pressure, corrosion inhibitors, viscosity modifiers and industrial additive packages. Its lubricant-components business operates from Germany as part of a global production and R&D network.
Lanxess is another major German supplier, with its Specialty Additives segment incorporating the Rhein Chemie and Lubricant Additives businesses. The company develops and produces additives for lubricants and other industrial applications.
Those companies have also been building production capacity closer to Asian customers. BASF, for example, operates a 50,000-t/y highly reactive polyisobutene plant in Nanjing through its BASF-YPC joint venture with Sinopec. The material is used as a building block for fuel and lubricant additives such as detergents and dispersants.
BASF has also expanded production in Shanghai. Its Jinshan site has produced synthetic ester base stocks for refrigeration lubricants for 20 years, with capacity doubled three years ago to meet growing demand in Asia-Pacific.