DUSSELDORF, Germany (Jan. 20)—Degussa A.G. plans to expand annual capacity of its Qingdao Degussa Chemical Company Ltd. carbon black plant in Qingdao, China, to more than 100,000 metric tons.
Qingdao Degussa didn´t disclose a timetable for the project nor the anticipated investment. An expansion disclosed in October 2003 to raise capacity 40 percent to 70,000 tons is still in progress, Degussa said.
The additional expansion will require a fourth production line at the plant, which opened in 1994.
The expansion is being undertaken to satisfy booming demand in China for carbon black, according to Robert Wissner, head of Degussa´s Fillers & Pigments Business Unit.
Degussa said the Chinese market for tires and rubber goods is changing dramatically. China is now the world´s largest market for truck tires and the third largest for all tires, stimulated by investment by the major car and tire producers and expansion of the nation's roads and highways.
The Qingdao plant is located close to major customers and to one of the largest ports in China.