Polykemi Group expanding production in China

Press release,7 June, 2021

A new production plant to start up in Chongqing in 2022

Polykemi Group is continuing its international growth journey. While also investing in the USA, Polykemi AB is opening another production unit in China. The production is due to start up as early as in 2022.

–  Our high-quality materials are in strong demand and we are opening up also in central China to be able to serve our customers even faster and better, says Magnus Lindahl, CEO.

Since its start in 2005, Polykemi Compounds in Kunshan, outside Shanghai, has improved its standing on the Chinese market. A third plant expansion at Kunshan was inaugurated in 2019, and both Polykemi Compounds and its subsidiaries Scanfill AB and Rondo Plast AB are now producing customer-adapted plastic compounds of the highest quality in Kunshan, both from virgin raw material and high-quality recycled raw materials.

Starting from 2022, Polykemi Group will further strengthen its presence in China and open another production unit in Chongqing, situated 1600 kilometers from Kunshan. The company has already had a sales office over the past decade in Chongqing, in the populous province of Sichuan in central China, and the new plant will both reinforce customer relationships and improve our service in the region.

–  Many of our customers and their suppliers are based in this area, so a production plant in Chongqing ensures that we can keep our delivery times and guarantee the same high quality for both virgin and recycled raw materials, says Magnus Lindahl, CEO of Polykemi Compounds Kunshan.

–  Furthermore, we can guarantee that customers who have production on multiple continents get the exact same high-quality total concept regardless of whether they have production in Asia, the USA or Europe.


This is our conscious strategy, to be geographically close to our customers.

Production on three continents in 2022

The new 9,300-square-metre plant (ca. 2.3 acres) will produce compounds from both virgin and recycled raw materials. The production is due to start up during the first quarter of 2022.

–  There is a growing interest in high-quality recycled plastics in China, and in combination with our customer-adapted plastic compounds from virgin raw materials, we are expecting to be able to achieve high production volumes in Chongqing. This is our conscious strategy, to be geographically close to our customers and to offer a broad range of expertise on several continents in our ever-changing world, says Magnus Lindahl.

The family business Polykemi AB is based in Ystad, Sweden, and has since 1968 successfully manufactured high-quality, customer adapted plastic compounds.

The company has had an production unit in China for nearly 15 years. In 2022, Polykemi Group will open another plant in China and simultaneously start production in North Carolina, USA.

–  Our founder Hugo Jönsson was personally involved in deciding this the next step of our China vision as early as 2004, and I am truly happy and proud to be getting this project underway, says Ola Hugoson, CEO and a member of the owner family.

–  The coincidence of our expansion in Chongqing and the investment in the USA underlines our dedication to be a partner in both the East and the West. Our family is convinced that these steps are taking the Group in the right direction.