According to a report by China Daily on February 24…
SHANGHAI — Netherlands-based high-performance elastomers producer Arlanxeo is positioning China as one of its strongest growth engines, aligning its investment strategy with the country’s rapid expansion in new energy vehicles (NEVs) and industrial upgrading initiatives.
Since 2012, Arlanxeo has invested nearly $1 billion in China, reflecting the market’s scale, value, and long-term potential, said CEO Stephan van Santbrink. “China is a key part of our global portfolio, and its importance continues to grow,” he told China Daily.
Strategic Expansion in High-Performance Materials
Under Santbrink’s leadership, Arlanxeo has opened two major facilities in Jiangsu province:
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Nantong: Nitrile Butadiene Rubber (NBR) plant
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Changzhou: Hydrogenated Nitrile Butadiene Rubber (HNBR) plant, with first-phase production commencing Feb 4
The Changzhou plant, with an annual capacity of 2,500 metric tons, can support roughly 12.5 million EV batteries per year, representing 25% of Arlanxeo’s global HNBR capacity. As the only HNBR producer with facilities across the Americas, Europe, and Asia, the company is strategically positioned to serve a global NEV supply chain.
Capitalizing on China’s NEV Market
China produced 16.63 million new energy vehicles in 2025, accounting for over 50% of domestic new auto sales — a global leadership position maintained for 11 consecutive years.
Arlanxeo’s high-performance elastomers, widely used in EV batteries and related components, are directly aligned with this structural market growth, creating both short- and medium-term demand opportunities for the company.
Alignment with Industrial Upgrading
China’s 15th Five-Year Plan (2026–30) emphasizes:
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Developing high-end manufacturing and quality productive forces
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Advancing industrial upgrading
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Building a high-end rubber and materials sector
Santbrink highlighted that these priorities align closely with Arlanxeo’s product portfolio, particularly in performance-critical applications for new mobility and energy sectors. “The 15th Five-Year Plan period provides positive momentum for deepening the value chain and upgrading industry,” he said.
Implications for Global Investors
For international investors and industrial analysts, Arlanxeo’s China strategy illustrates:
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Strategic Market Entry – Leveraging China’s scale in EVs and industrial materials for long-term growth
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Supply Chain Integration – Domestic production supports global EV supply chains
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High-Value Segment Focus – HNBR and NBR products are critical inputs for high-growth, high-margin applications
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Policy-Enabled Tailwinds – Government industrial upgrading plans provide structural demand support
Santbrink concluded: “China is not only an important part of our portfolio but one whose importance will continue to increase. We are expanding into new products and increasing capacity in line with the ongoing development of the Chinese market.”