UK de-icing fluid specialist Kilfrost (H4/G4) plans to open a production facility in China within two years.

China and North America will be the company's most important growth markets in future, says chief executive Gary Lydiate.

At the moment, Kilfrost is exporting its de-icing fluids to China, where it conducts a training partnership with China Southern Airlines. But Lydiate tells Flight Daily News that the company would "probably" establish a local production line within the next two years.

Even though North America's airline industry will not grow as fast as China's, he still sees great potential to expand the company's market share in the USA and Canada. Additional growth is to come from diversification into speciality chemicals in other sectors apart from aviation.

Kilfrost became the first supplier to offer US Federal Aviation Administration-approved, environmentally friendly de-icing fluids. While standard products employ crude oil-based glycol, the company jointly developed a biodegradable solution with DuPont Tate & Lyle using glycol derived from corn sugar.

Thus far, only Air New Zealand and All Nippon Airways have opted for the green alternative. It fits well with Air New Zealand's drive to become more environmentally friendly, but the bio-fluid tends to be more expensive compared with standard products. Nevertheless, Lydiate reports that going green turned out to be the cheaper solution for both airlines.

Given the current economic woes in Europe and North America - and little appetite for additional environmental regulation - he does not expect many airlines to switch over soon, however. "I think it is going to take time for people to get their heads round it," he says.

Source: Flight Daily News