Aug 18 2010
DuPont and Chenguang Chemical Research Institute, a subsidiary of China National Chemical Corporation (ChemChina), announced that they have signed a letter of intent to form a 50/50 joint venture for the production and marketing of fluoroelastomer gums and pre-compounds in China.
The joint venture, which will include a new state of the art precompounding plant to be constructed in Shanghai, is expected to be operational in the second half of 2011 pending completion of definitive agreements and securing appropriate government approvals. Financial terms were not disclosed.
"This investment will enhance DuPont's ability to meet rapidly growing fluoroelastomer demand and to bring industry-leading products and technology-based solutions to customers in China and globally," said Diane H. Gulyas, president - DuPont Performance Polymers. "This joint venture combines DuPont's leading fluoroelastomer technology, global reach and strong DuPont Viton brand with Chenguang's integrated manufacturing position and strong China presence to yield new capabilities to serve customers."
"Developing sustainable and industry leading solutions through partnership with global reach companies is a key strategy of ChemChina," said Xiao Sen Fan, vice president - ChemChina. "Chenguang has established a leading position in the China fluoroelastomer market and this joint venture will bring new experience, higher value and better service to the global chemical industry. It will further strengthen our capabilities and technology and will set up a successful model for future collaboration between DuPont and ChemChina."
Chenguang Chemical Research Institute is an affiliate of China National Chemical Corporation, (ChemChina), a large state-owned enterprise established in May 2004. Since its founding, ChemChina has been following the development concept of "Traditional Chemicals, Advanced Materials", insisting on providing high quality products and services in China with a global view, utilizing best practices and maintaining a leading position in the chemical industry. As an outstanding subsidiary of ChemChina, Chenguang has excellent capabilities in research and development, and leading technology and equipment for fluoroelastomer gum production in China.