Specialty chemicals supplier Eastman Chemical Co. has recently signed its first licensing agreement in China, after years of successful supply relationship with an appliance giant.
Midea Group, the third largest appliance maker in China, held a signing ceremony last week at its headquarters in Shunde, Guangdong province, to announce its licensing deal with Eastman.
Under the agreement, Eastman licenses its Tritan copolyester brand to Midea's small appliances unit, which has been using Tritan in its juicers and blenders since 2014, and credited the premium material choice for its boost of market position.
Midea said it plans to promote the Tritan brand in its products, packaging and marketing materials. It also pledges to extend its use of Tritan into baby products and food-contact products. The companies will also collaborate on the design, development, testing and marketing of differentiated products.
Eastman Global Sales Director and Regional Business Director for Asia Pacific Randy Beavers said the two companies share common values and social responsibilities, according to a Midea statement. “That's why Eastman chose Midea as the only licensee in the small appliance sector in China,” he said.
The deal is also expected to raise brand awareness and market share of Tritan in the global market.
Thanks to consumers' increasing pursuit of a healthier lifestyle, power appliances are showing impressive growth trends in China — sales of juicers jumped 29 percent in 2015 and food processors rose 20 percent, according to market data quoted by Midea.
In addition to commercial cooperation, the two companies also plan to jointly promote the establishment of small appliances industry standards in China and promote BPA-free materials to consumers.
Last month, Eastman also announced that Singapore-based appliance maker Ferrano has chosen Tritan for its new BlendExpress personal blender product. The company has been using Tritan in its existing line of blenders called the KitchenPro since 2014. The products are sold in Japan, Malaysia and Singapore.