Shanghai, China – Liming Chemical Research and Design Institute, a maker of PU systems, elastomers and adhesives for the auto sector, has been broadening its portfolio with more low VOC-products over the past few years, the institute told UTECH-polyurethane.com in an exclusive interview at UTECH Asia 2016.
Rolling out three to five new products each year, in 2015 Liming spent 7% of its nearly CNY 600m ($90m) total revenue on research and development. PU related businesses brought in CNY 300m sales last year, showing double-digit growth compared to 2014.
“Some of our products have better performance in VOC than BASF and other international chemical giants, such as the systems we provide for China’s bus maker Yutong used in auto seats,” said Zhao Xiuwen, manager and engineer of the institute’s subsidiary PU Developing Company. “We are one of the forerunners now.”
China has been tightening its environmental policies with a new regulation for passenger car interior air quality expected to come into force on 1 January, 2017. The mandatory regulation will replace the current voluntary guideline and stipulates more stringent standards for four of the eight compounds measured which include, benzene, toluene, xylene and ethylbenzene. “Innovation is the only way out,” added Zhang.
Based in Luoyang, Henan, Liming has 60kT/year systems capacity and produced 20kT last year. It plans to up its production once it expands into overseas markets, starting with the Middle East and Southeast Asia. “Competition overseas is not as fierce and the margin is higher,” said Zhang. “It’s a priority on our schedule.”
Exchange Rates: Xe.com 6 August 2016.