Ashland Inc plans to invest at least US$15 million in China within three years, a company official said yesterday at the grand opening of its Ashland Management (Shanghai) Co Ltd.
The management firm will provide services in finance, accounting and legal information to support Ashland's China business, which includes polymers, casting solutions and lubricant sales.
The New York-listed company is well known for its Valvoline motor oil.
Gary A. Cappeline, Ashland senior vice president, said the additional funds would be used for investment in a water treatment plant in Changzhou, Jiangsu Province.
It is scheduled to start construction early next year.
He also showed full confidence that his company could triple its China sales within three years.
"Our investment (in China) has accelerated greatly in the past two to three years. I will feel surprised or disappointed if the sales don't triple in the next few years," he said.
Ashland's sales in China topped US$50 million last year.
Since 1995, it has invested US$22 million in China.
"We will hire more people at the same rate of the firm's revenue growth," Cappeline said, adding the company now employs about 140 in the country.
The US-based company operates in five sectors, including chemicals, asphalt and concrete.
Ashland is not alone among overseas companies involved in specialty chemicals in China's rapidly growing market.
Germany-based Degussa AG, the world's largest specialty chemical maker, expected its China sales to grow by 20 percent this year, said Eric Baden, president of Degussa (China) Co Ltd in Shanghai earlier this month.