China's leading manufacturer of fluorine chemical and polymer products, Shanghai 3F New Materials Co. Ltd., said in a Sept. 23 announcement that the company has signed an agreement of intent with DuPont China Holding Co. Ltd. to establish a joint venture in 2012.
The 50-50 venture, to be located in Changzhou, will make a “significant investment in new capacity and technology” and mainly will produce polytretrafluoroethylene and perfluorinated ethylene propylene copolymer resins.
Based on the general agreement, the company will conduct in-depth negotiations with DuPont and a further feasibility study of the project, publicly traded 3F said.
In the first half of 2011, 3F more than doubled its operating revenue to about $420 million, compared with the same period last year. Net profit increased tenfold to $102.6 million. The company attributed the rapid growth to soaring market demand and product prices.
Global consumption of PTFE exceeds 220 million pounds annually, Huachuang Securities noted in a research report. Despite overcapacity outside China, there is a shortage of PTFE inside the country.
The partnership is also expected to bring a technological breakthrough to the Chinese fluoropolymer industry, which is expanding at a 20-plus percent compound annual growth rate, the report added.
Wilmington, Del.-based DuPont already has a 7-year-old venture with 3F in Changshu, China, which makes refrigerant blends.