Grace China Ltd., a subsidiary of W. R. Grace & Co. (NYSE: GRA), announced today the groundbreaking for its new production facility for waterproofing products in the central Chinese city of Ezhou. The planned 11,000 square meter facility is located on a 60 Chinese acre site (10 U.S. acres) in the Ezhou Economic Development Zone of Hubei Province. The new facility, scheduled to be completed in the second half of 2013, will be equipped with state-of-the-art production and quality control capabilities, and house about 100 employees. The facility is expected to double Grace’s regional production capacity for specialty waterproofing products sold to Chinese customers and exported to the rest of Asia, Latin America and other fast-growing emerging markets. Grace China Ltd. was founded in 1986 as the first wholly foreign-owned company to do business in the People’s Republic of China—through its can sealants plant located in Shanghai. Currently, Grace operates six manufacturing facilities, four sales offices and four technical service centers in China. About Grace Grace is a leading global supplier of catalysts; engineered and packaging materials; and, specialty construction chemicals and building materials. The company’s three industry-leading business segments—Grace Catalysts Technologies, Grace Materials Technologies and Grace Construction Products—provide innovative products, technologies and services that enhance the quality of life. Grace employs approximately 6,000 people in over 40 countries and had 2011 net sales of $3.2 billion. More information about Grace is available at www.grace.com. About Grace Construction Products Grace Construction Products is a leading global provider of construction chemicals and building materials that are used to enhance the durability, strength and appearance of structures. Products include concrete admixtures, fibers, surface treatments and liquid pigments, additives for cement processing and masonry products, waterproofing, air and vapor barriers and fire protection. More information about Grace Construction Products is available at www.graceconstruction.com.
Jefferies analysts note that recent construction spending data indicates a cycle rotation away from construction-exposed names and toward industrial- and durable goods-levered firms could be playing out.