Clariant plans to construct a new catalyst production site in China, an investment that will further strengthen the Swiss chemicals company's position in China and enhance its ability to meet the demand of China's thriving petrochemicals industry.

Investment in the catalysts business is part of Clariant's commitment to its portfolio for future growth, which also strengthens Clariant's ability to support China's petrochemicals industry, especially the propane dehydrogenation market, said the company.

"As we have defined the right portfolio for Clariant's focused growth strategy, it is now vital that we invest in these core high-value specialty businesses, such as catalysts, to put them in the strongest possible market positions," said Hans Bohnen, CEO of Clariant.

"China continues to be a growth market with attractive prospects for Clariant. This investment will be of great benefit to our company's positioning and customer proximity in the entire region."

China is the world's leading producer of on-purpose propylene. The nation's production volume accounts for around 50 percent of total global capacity and is expected to continue rising by 8 percent annually.

Located in the Dushan Port Economic Development Zone in Jiaxing, Zhejiang province, the new plant, which will be Clariant Catalysts' most digitized facility to date, will focus on meeting China's PDH requirements through CATOFIN production.

In the future, Clariant may expand manufacturing capabilities at the site to offer further catalyst technologies relevant to China's chemical industry, it said.

"The Jiaxing CATOFIN plant is a key component of our China strategy and further improves our commitments to the country's growing PDH market," said Stefan Heuser, senior vice-president and general manager at Clariant Catalysts.

Once completed, it will be Clariant's third catalyst production plant in China, together with the joint venture facility with the North Huajin Group in Panjin and a fully-owned Clariant facility in Jinshan, Shanghai.