DuPont Fluoropolymer Solutions and Zhonghao Chenguang Chemical Research Institute Co. Ltd. are proceeding with a 50-50 joint venture to serve the fast-growing Chinese fluoroelastomers market.
The JV, DuPont Haohua Chenguang Fluoromaterials (Shanghai) Co. Ltd., will build a new pre-compound manufacturing facility in Shanghai and market fluoroelastomer gums and pre-compounds in China under the Chenguang and Viton brands, the companies announced in a Jan. 28 news release.
DuPont and Chenguang first announced the JV back in 2012, expecting to start the operation of the JV and break ground on the precompounding plant in the first half of 2013.
But the project didn't quite follow the original schedule.
“DuPont and Chenguang have spent considerable time to ensure we put in place all the elements necessary for a successful joint venture,” DuPont spokeswomen Janet Smith told Plastics News in a Jan. 29 statement.
“In addition, we completed an extended regulatory approval process in China. These things took longer than we had expected, but what is most important is that we believe we have developed a strong strategic alliance that will benefit the marketplace,” Smith said.
The companies believe the alliance will leverage DuPont's technology leadership and Chenguang's integrated technology and manufacturing footprint.
“This joint venture is ideally positioned to support China's growing market for fluoroelastomers, particularly for high-performance applications in China's expanding automotive, aerospace, energy, electronics and telecommunications markets,” said Thierry F.J. Vanlancker, president, DuPont chemicals & fluoroproducts.
Robert Lu, vice president of China National Chemical Corp., added the new entity will combine the complementary strengths of Chenguang and DuPont, and more effectively serve customers in China and globally.
Chenguang is a subsidiary of Beijing-based China National Chemical Corp.
With both strategically positioned in the fluoroelastomers industry, DuPont and Chenguang said they are evaluating additional potential areas for strategic collaboration.