On the morning of November 22, Klebchemie M.G.Becker GmbH & Co.KG signed a cooperation agreement with Banfert New Materials Co., Ltd. to build the Klebchemie Asia-Pacific R&D Center and the hot melt adhesive production base in Ningxiang High-tech Zone, with an investment of about 200 million yuan.

Klebchemie M.G.Becker GmbH & Co.KG was established in 1948 and has become a professional manufacturer of adhesives after more than 70 years of development.

It’s at the world’s advanced level in the PUR hot melt adhesive industry and has a market share at the forefront of the world.

In consideration of technology and process confidentiality, the company now only makes production at is headquarters in Germany, so it was difficult to see the production process in the Chinese market before.

This time, the Klebchemie Asia-Pacific R&D Center and hot melt adhesive production base in Ningxiang has a foreign direct investment of 80 million yuan. Once put into operation, it’s expected to achieve an annual output value of about 600 million yuan and an annual tax revenue of about 30 million yuan.

“A good start heralds a bright future.” Leohard Ritzhaupt, CEO of Klebchemie M.G.Becker GmbH & Co.KG, said frankly that German companies have always been very cautious in overseas investment. Through inspection and communication, the company executives found Ningxiang had the best investment environment, so they chose Ningxiang High-tech Zone.

Leohard Ritzhaupt said, “Our hot melt adhesive has leading technology and market share globally. We hope that Ningxiang will become the starting point for exploring new markets. We also hope to receive good support in human resources in the future and better returns on investment.”

Li Xinxiong, chairman of the Chinese cooperative enterprise Banfert New Materials Co., Ltd., said that the company was established in 2007 and later moved to Ningxiang. Now, it has become an advanced collective in the national petroleum and chemical industry that integrates the research and development, production, sales and services of environmentally friendly new materials. It’s also a national “little giant” enterprise.

Headquartered in Ningxiang Economic and Technological Development Zone, Banfert has four major production bases in Hunan, Guangdong, Shandong and Jiangsu provinces, as well as two overseas bases in Vietnam and Thailand. It also has multiple overseas service agencies.

“We inspected many places across the country for the preliminary site selection of the project. Taking into account various favorable factors, we finally chose to settle in Ningxiang.” 

Li Xinxiong is very grateful for the preferential policies provided by the Ningxiang government. He said that he would spare no effort to promote the construction of this project, contributing new forces to the high-quality development of Changsha’s economy and society.

The cooperation between Ningxiang and German enterprises has a long history. Five years ago, Truking Technology acquired a German pharmaceutical company. Last year, Germany BASF acquired the equity of Shanshan New Energy.

Unlike previous equity transactions, this cooperation in the manufacturing industry was an exchange of technology and craftsmanship and even brought Klebchemie’s Asia-Pacific R&D Center to Ningxiang.