On August 17, 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 (JV) for the production and marketing of fluoroelastomer gums and pre-compounds in China. The JV, which will include a new pre-compounding plant to be constructed in Shanghai, is expected to be operational in the second half of 2011, pending the completion of definitive agreements and securing appropriate government approvals.
Officials present at the signing ceremony were: Fan Xiaosen, Vice President of ChemChina; Hu Dongchen, Acting General Manager of China Haohua Chemical (Group) Corporation: Xie Xueduan, Executive Vice President of Chenguang Chemical Research Institute; Tony Su, President of DuPont at Greater China; and Randy Stone, Managing Director of Asia Pacific DuPont.
During the signing ceremony, Fan Xiaosen and Tony Su said in theirs speeches that they were confident that this cooperation has bright future. "Developing sustainable solutions through partnership with global reach companies is a key strategy of ChemChina," said Fan Xiaosen, Vice President of ChemChina. "Chenguang has established a leading position in China’s 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."
According to Tony Su, President of DuPont at Greater China, this investment will enhance DuPont’s ability to meet rapidly growing demands for fluoroelastomers and to bring industry-leading products and technology-based solutions to customers in China and around the world. He also said that the joint venture combines DuPont’s leading fluoroelastomer technology, global reach and strong DuPont™ Viton® brand with Chenguang’s integrated manufacturing system and a strong Chinese presence to yield new capabilities to serve customers.
Thereafter, Xie Xueduan and Randy Stone signed the letter of intent.
Chenguang Chemical Research Institute is an affiliate of the China National Chemical Corporation, (ChemChina), a large state-owned enterprise established in May 2004. Chenguang has capabilities in research and development and technology and equipment for the production of fluoroelastomer gum in China.
DuPont is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions to society’s problems. Operating in more than 90 countries and regions, DuPont offers a range of products and services for markets, including agriculture and food, building and construction, communications, and transportation.