Arlanxeo bullish on chemicals sector

Positioning the Chinese market as one of its strongest growth engines, Arlanxeo, a Netherlands-based performance elastomers producer, looks forward to contributing to China's 15th Five-Year Plan (2026-30) while seizing market opportunities to achieve its own growth and expansion, said a top company executive.

Since 2012, Arlanxeo has invested nearly $1 billion in the country, reflecting the significance of the Chinese market in terms of scale, value and opportunity, said Stephan van Santbrink, CEO of Arlanxeo, during an exclusive interview with China Daily.

"I hope that we can continue to invest in the future and continue to grow our presence in China. Indeed, China is a very important part of our overall performance, with its contribution growing over the years, which is why we're investing in it, because we see that strengthening and growing position," said Santbrink.

Since he took the position of CEO in 2023, two new plants of Arlanxeo have been opened in China. One is a nitrile butadiene rubber (NBR) plant in Nantong, Jiangsu province and the other is a hydrogenated nitrile butadiene rubber (HNBR) plant that started production of its first phase on Feb 4 in Changzhou, Jiangsu province.

The new Changzhou plant represents an important expansion of the company's global HNBR capacity, he added. It has an annual capacity of 2,500 metric tons and is capable of supporting about 12.5 million electric vehicle batteries per year.

The CEO said that as currently the only synthetic rubber manufacturer with HNBR facilities in the Americas, Europe and Asia, Arlanxeo's total global HNBR capacity is close to 10,000 tons, with 2,500 tons (or 25 percent) in Changzhou.

In 2025, China's production and sales of new energy vehicles reached 16.63 million and 16.49 million units, respectively, up 29 percent and 28.2 percent year-on-year. The country has ranked first globally in NEV production and sales for 11 consecutive years, said the China Association of Automobile Manufacturers.

"Backed by favorable policies, ample supply and continuous improvements in infrastructure, NEVs accounted for over 50 percent of domestic new auto sales in 2025, indicating that NEVs have become the dominant force in China's auto market," Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers, was quoted as saying by Xinhua News Agency.

"I believe China will continue to grow and remain one of the faster-growing economies globally, while continuing to play a leading role in the world economy. As a result, China is not only an important part of our portfolio, but one whose importance will continue to increase," said Santbrink.

He said the areas where China is growing — such as new energy and new mobility — are closely aligned with the company's high-performance, highly reliable products. In addition, China's strong innovation capabilities are also critical to what Arlanxeo offers. "For these reasons, I see our presence in China continuing to grow, in line with the ongoing development of the Chinese market."

He said China's focus on developing new quality productive forces, advancing industrial upgrading and building a high-end rubber industry, aligns closely with Arlanxeo's role.

In the meantime, the 15th Five-Year Plan provides positive momentum for deepening the value chain and upgrading industry.

"Overall, we see significant positive momentum for a company like ours in the 15th Five-Year Plan period, enabling us to contribute to China's development while achieving our own growth. China is and will be one of the driving forces in the world economy, and we're happy to be here. For us, China is the key growth market, where we are expanding into new products and increasing capacity. China is one of our strong focus areas or growth areas."