Grace Plans Manufacturing Expansions in Brazil and Malaysia to Support Growth in Renewable Fuels Industry
COLUMBIA, Md., Oct 14, 2010 (BUSINESS WIRE) -- W. R. Grace & Co. (NYSE: GRA) today announced plans to increase its manufacturing capacity for silica gel at its existing facilities in Kuantan, Malaysia and Sorocaba, Brazil.
Construction at both sites is expected to begin by the end of 2010 with production occurring by the third quarter of 2011.
The global renewable fuels industry is expected to grow significantly over the next several years, especially in the emerging economies of Latin America and Asia Pacific. Grace's planned expansions will enable increased production of silica gel products for the renewable fuels industry, particularly for the production of both biodiesel and renewable diesel.
Grace's silica gel (marketed under the trade name of TriSyl®) improves a refinery's economics by removing contaminants from natural oil feedstocks more efficiently than alternative products. This announced investment increases existing capacity at Sorocaba and adds new manufacturing capabilities at Kuantan. Additional silica products produced at those sites are used in the plastics, industrial, consumer, food and beverage industries.
"Grace is uniquely positioned to respond to the trends in the renewable fuels and chemicals industries with our materials science and catalyst expertise and established relationships with petroleum and natural oil companies," said Gregory E. Poling, Vice President of W. R. Grace & Co. and President of Grace Davison. "Additional capacity underscores our commitment to serving our customers and maximizing economic growth in developing markets."
The Kuantan site began production in 1996 and is currently one of Grace's largest in the Asia Pacific region. The site produces more than 40 grades of silica that are used for industrial applications such as paints, plastics, paper and consumer goods. In addition to the manufacturing facility, a Technical Customer Service lab supports regional customers.
The Sorocaba site began production in 1984 and is currently one of Grace's largest in the Latin America region. The site produces more than 50 grades of silica that are used for applications such as paints, plastics, beer and other beverages, pharmaceuticals and edible oil. In addition to the manufacturing facility, an R&D center and Technical Customer Service lab serve regional customers.
Grace is a leading global supplier of catalysts and other products to petroleum refiners; catalysts for the manufacture of plastics; silica-based engineered and specialty materials for a wide range of industrial applications; sealants and coatings for food and beverage packaging, and specialty chemicals, additives and building materials for commercial and residential construction. Founded in 1854, Grace has operations in over 40 countries. For more information, visit Grace's web site at http://www.grace.com.
This announcement contains forward-looking statements, that is, information related to future, not past, events. Such information generally includes the words "believes," "plans," "intends," "targets," "will," "expects," "anticipates," "continues," "outlook" or similar expressions. For these statements, Grace claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Grace is subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements or that could cause other forward-looking information to prove incorrect. Factors that could cause actual results to materially differ from those contained in the forward-looking statements include: Grace's bankruptcy and proposed plan of reorganization, the availability of financing for Grace's proposed plan of reorganization, Grace's legal proceedings (especially the environmental proceedings), the cost and availability of raw materials and energy, Grace's unfunded pension liabilities, costs of environmental compliance, risks related to foreign operations, especially security, regulation and currency risks, and those factors set forth in Grace's most recent Annual Report on Form 10-K, quarterly report on Form 10-Q and current reports on Form 8-K, which have been filed with the Securities and Exchange Commission and are readily available on the Internet at www.sec.gov. Reported results should not be considered as an indication of future performance. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date thereof. Grace undertakes no obligation to publicly release any revisions to the forward-looking statements contained in this announcement, or to update them to reflect events or circumstances occurring after the date of this announcement.
SOURCE: W. R. Grace & Co.
W. R. Grace & Co.