Sensing an opportunity from Dow Chemical Co.'s closure of a Louisiana chlorinated polyethylene facility, Dandong Decheng Chemical Co. Ltd., which makes that resin in China, has struck a deal with U.S. distribution firm T&T Marketing Inc.
Allamuchy, N.J.-based T&T, which has six distribution centers in the United States and Canada, plans to start selling Decheng's chlorinated PE resins and compounds.
Decheng and T&T said in a news release that Dow's late-2008 decision to close its Plaquemine, La., facility making Dow's Tyrin-brand chlorinated PE has disrupted the market and sent manufacturers looking for alternative supplies.
This is a good opportunity for us to enlarge our market, Decheng President Liu Qing said in a June 26 interview at NPE2009. The company, which is based in Donggang, China, exhibited at the show, held June 22-26 in Chicago.
Decheng is hoping to ship 4.4 million pounds of material into North America in the first year of the deal, Liu said.
The company, which employs 200, has four production lines and annual capacity of 33 million pounds at its Donggang plant. It focuses on the cable and wire and auto markets.
General Manager Wang Wenjun said Dow is the world's top producer of chlorinated PE but Decheng can produce almost the same grades as Dow, and is heavily focused on research and development.
Liu said about 60 percent of her company's sales are exported to more than 20 countries. She said that although Decheng has been exporting chlorinated PE and compounds to North America for a decade, she believes it is important for Chinese firms to find good partners, such as T&T, to enter the U.S. market on a bigger scale.
Chlorinated PE is used as an impact modifier for PVC and as a base resin for wire and cable jacketing compounds. Decheng's materials are lead-free and compliant with European RoHS regulations, which restrict and regulate the use of certain hazardous substances in electrical and electronics equipment.
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