Swiss specialty chemicals producer Clariant expects its sales in China this year to grow by around 30 percent from 2009, the company's chief executive said on Wednesday.

The Chinese market, which now accounts for approximately 8 percent of Clariant's global business, has become one of the fastest-growing markets for the company, said Hariolf Kottmann, CEO of the company.

The company generated global sales of 6.6 billion Swiss francs ($6.9 billion) in 2009.

Many sectors in China have huge opportunities for the company, such as nutrition and automotive, said Kottmann.

The company on Wednesday opened its new China headquarters and technical applications center in Shanghai. It also announced it will inaugurate a new pigment plant in Hangzhou on Friday.

A statement from Clariant said that the moves are to support its customers in China "with local production and support services that shorten delivery lead times and enhance supply chain efficiency".

Clariant has also completed investment in a plant in Zhenjiang, Jiangsu province, and is now building another facility in Daya Bay, Guangdong province.

By mid-2011, the company will have invested approximately 150 million Swiss francs in China over a two-and-a-half-year period.

Clariant has launched a global strategy to focus more on highly profitable sectors. The company's China strategy is in line with this, said Kottmann.

The company will pay more attention to organic growth and making acquisitions is not on its agenda at the moment, he said. Clariant currently has 1,300 employees in China and is represented in 13 cities.

China will become the world's largest market for chemicals in the next few decades, according to industry experts. An increasing number of multinational chemical companies have quickened the pace of their growth in the country, such as BASF and Dow Chemical.

Compared with foreign counterparts, domestic chemical companies still lack advanced technology. More international cooperation is expected in the field, said analysts.

The central government has said more efforts are required to develop emerging industries of strategic importance, including the development of new materials.

China will pilot the development of the industry by formulating industrial standards and creating a sound market environment.

By Wan Zhihong

(China Daily 10/22/2010 page14)