U.S.-based Chevron Oronite Co. LLC has signed an investment agreement to build a wholly owned additive manufacturing plant in Ningbo, a seaport city in northeast of Zhejiang Province, China. The investment agreement was formalized in a signing ceremony held March 3 in Ningbo.
Desmond King, president, Chevron Oronite, was in attendance along with other Oronite leaders and project team members. Ningbo was represented by Lu Ziyue, mayor of Ningbo, as well as other members of the local government and officials representing the Ningbo Economic & Technical Development Zone (NETD).
Oronite stated that, while still under review, its current project timeline anticipates that initial capacity would be on stream in 2019 and that further development would be completed in phases to align with market demand.
“With the completion of a major expansion at our additives manufacturing facility in Singapore in 2014 and a project currently underway to add carboxylate capacity at the Singapore facility, we are currently well positioned to meet our supply needs throughout Asia, including the escalating demand in China,” said King.
“While our Singapore plant is the largest additives manufacturing facility in the region, we also anticipate that additive demand will continue to grow in China and that new capacity will eventually be required. Adding a new supply point in China by the end of this decade will provide even greater flexibility to help ensure we continue to reliably meet our customers’ needs through a supply chain that is unmatched in our industry.”
The land is part of the Ningbo Economic & Technical Development Zone and is ideally situated near the Ningbo Port, one of the largest ports in the world in terms of annual cargo throughput.
“Ningbo welcomes Chevron Oronite to a growing manufacturing base that already includes many world-renowned companies that have also invested in NETD and helped it grow into one of the top development zones in China,” Lu said.
“After an extensive analysis of many potential sites in China, we are extremely pleased to move forward with our plans in Ningbo. The location provides Oronite with advantages both in terms of distributing our products throughout China, as well as connecting to our other manufacturing facilities around the world due to its location near a major port,” said King.
Chevron Oronite is a wholly owned subsidiary of Chevron Corp., which is headquartered in San Ramon, Calif., U.S.A.