Clariant, a Swiss specialty chemical company, is bullish about its market growth in China and vows to further expand its footprint in the country in the years to come, said a top company executive.

The company announced on Oct 12 the opening of its new production facility for halogen-free flame retardants in Daya Bay off Huizhou, Guangdong province, with an investment of 60 million Swiss francs ($67 million) as part of its efforts to further facilitate the company's expansion in China with more chemical manufacturing facilities.

The project is expected to support the rapidly growing demand from China and other Asian nations for innovative and sustainable fire protection in transportation, 5G communications, infrastructure and appliances, it said.

A second line is under construction at the Daya Bay facility, with an additional 60 million Swiss francs invested, and is expected to be put into operation in 2024, it said.

China has massive potential in the petrochemical sector, with a scale and development pace unmatched elsewhere, which has attracted numerous multinational chemical corporations to invest in recent years, said an analyst.

The increasing demand from customers in China, as well as other Asian countries, bolsters the continuous and fast growth of their business in China, leading to increasing investment in the country, especially in the research and development sector, said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.

Clariant said it believes the new manufacturing plant will help strengthen its position and global competence in innovative and sustainable fire safety solutions.

"We have the proximity to better service our customers in China and across the Asia-Pacific region," said Angela Cackovich, president of Clariant's adsorbents& additives unit and the Europe, Middle East and Africa (EMEA) region.

"Local production means we can improve cooperation and design tailored solutions to their developing needs as well as significantly reduce delivery lead times," she added.

Clariant announced in April the opening of its new CATOFIN catalyst production site in Jiaxing, East China's Zhejiang province, adding to its nearby catalyst plant in Jinshan district and catalyst research and development center in Minhang district of Shanghai to further facilitate the company's expanding footprint in China. CATOFIN is a catalyst for propane dehydrogenation that is used in the production of olefins such as propylene.

The Chinese chemical market, with the fastest growth rate globally, accounted for around 40 percent of the world's chemical market. With its recent investments in China, Clariant is planning to increase its local production rate from 35 percent in 2021 to 50 percent in 2025.

At least one-third of the company's growth capital expenditure goes to China and it is believed the trend will only accelerate this year and in the years to come, it said.