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“THE RISING DRAGON“
The ALTANA Group is investing substantially in Asia’s growth markets. BYK is not only expanding its site in Tongling, but is also establishing a new site in Shanghai Chemical Industry Park. With manufacturing, research and development (R&D), and service right at our customers’ sites, we are generating added value for our stakeholders.
ALTANA is paving the way for sustainable profitable growth by acquiring business activities, through innovative technologies, and by investing strongly in its core business. Thanks to our excellent financial position, we can implement our growth strategy consistently and successfully.
The ALTANA Group has a presence around the globe with 47 manufacturing sites as well as 60 service and research laboratory sites. We currently generate 88 percent of our sales outside of Germany. Accounting for 33 percent of ALTANA’s total sales, Asia is one of our biggest regional growth drivers. China now comprises 18 percent of the company’s sales, making it the company’s second-largest sales market. The ALTANA Group is steadily extending its position in Asia, including at the Tongling site of its biggest business division, BYK, and at BYK’s new site at Shanghai Chemical Industry Park.
From small outposts in Asia to one of the main pillars of the ALTANA Group, today the Asia region is providing key added value for our company, accounting for around a third of our total sales and recording above-average growth rates. The central investment focus is China with the Tongling site of ALTANA’s largest division, BYK. In addition, BYK has a new site in the Shanghai Chemical Industry Park (SCIP). The name “The Rising Dragon” gives an indication of the strategic importance of the SCIP and Tongling projects. “With the new site at Shanghai Chemical Industry Park we are extending our leading position in R&D, technical customer service, manufacturing, and logistics, right at our customers’ sites in China,” says Kreece Zhang, CFO of BYK Additives Shanghai.
The strengthening of production and the supply-chain competence locally, the consistent expansion of the product portfolio to meet the needs of the local market, the enlargement of local sales teams, and investments in labs in China are bolstering our competitive position. In addition, different functions are being brought together under one roof at an integrated site in Shanghai.
Strengthening China as a Site for Our Business
“Hence we are meeting our customer’s growing requirements regarding innovative strength, product and manufacturing quality, as well as service orientation. Last but not least, the increase in capacity on the part of our local Chinese customers is an important signal reflecting greater customer satisfaction,” adds Kreece Zhang.
R&D, application laboratories, Technical Service, logistics, and administration are concentrated on a piece of property encompassing 50,000 square meters. The new site in Shanghai will be officially inaugurated in April 2019. In a second phase, a new manufacturing site is to be built there starting in 2021. In September 2018, the first sod was turned for the expansion of the Tongling site. “Demand for our additives is so high that we have to swiftly push forward the capacity expansion,” says Jing Wang, site manager at BYK Tongling. Among other things, new reaction and dilution vessels are planned, as well as the required factory hall, the expansion of the tank farm, and a new warehouse. The manufacturing capacity is to be quadrupled.
Modern, cosmopolitan, and functional – BYK’s new site in Shanghai Chemical Industry Park (SCIP). The 50,000 square meter property has sufficient space for R&D, technical service, logistics, administration, and not least storage space.
Investment of Almost 50 Million Euros
“The capacity expansion enables us to offer individual product solutions for the Chinese market,” says Jing Wang. “And that’s exactly what our customers want. The demand is there. So we can decisively enhance our competitiveness.” The new capacities are slated to be ready for operation next year.
The ALTANA Group is creating the prerequisites for further growth in Asia. To this end, we are investing heavily. A total of almost 50 million euros have been allocated for the newly integrated site in Shanghai and to strengthen the Tongling site by expanding the manufacturing facilities there – to give “The Rising Dragon” a sufficient boost.