Tech & Product

DuPont Fluoropolymer Solutions and Chenguang Announce Formation of a Fluoroelastomers Joint Venture

January 28, 2015

WILMINGTON, DE and BEIJING -- DuPont Fluoropolymer Solutions (DuPont) and Zhonghao Chenguang Chemical Research Institute Company Limited (Chenguang), a subsidiary of China National Chemical Corporation (ChemChina), announce a key action to serve China's rapidly expanding fluoroelastomer market through world-class science and technology, targeted capacity expansions and sustainable solutions for high-performance applications.

The companies have formed a 50/50 joint venture for the production and marketing of fluoroelastomer gums and pre-compounds inChina, which will expand supply of fluoroelastomers inChina.

Fluoroelastomers offer important and unique characteristics that enable them to play a critically important role in many applications. These include designing more efficient and reliable automobiles, building longer lasting chemical process equipment, generating clean and renewable energy options and developing high-performance aircraft.

The DuPont-Chenguang strategic alliance will serve the fast-growing fluoroelastomer markets by bringing together the complementary expertise of DuPont and Chenguang. The alliance will enable investments in launching new products, improving technology and optimizing capacity, with a focus on reliable supply of high-quality fluoroelastomers for markets and customers.

Both DuPont and ChemChina have strategic positions in the fluoroelastomers industry and are evaluating additional potential areas for strategic collaboration.

The fluoroelastomers joint venture will be named DuPont Haohua Chenguang Fluoromaterials (Shanghai) Co., Ltd. and will sell fluoroelastomers under the Chenguang and Viton® brands. The joint venture will leverage the DuPont technology leadership and the Chenguang integrated technology and manufacturing footprint, and will provide customers with high-quality products. The joint venture also will make investments to build a new pre-compound manufacturing facility inShanghai.

"This joint venture is ideally positioned to support China's growing market for fluoroelastomers, particularly for high-performance applications inChina's expanding automotive, aerospace, energy, electronics and telecommunications markets," saidThierry F.J. Vanlancker, president, DuPont Chemicals & Fluoroproducts. "We are excited to pursue this strategic alliance with Chenguang, with whom we can more effectively deliver superior value to customers."

"This strategic alliance will combine the complementary strengths of Chenguang and DuPont, and also add strategic investments in new capacity," saidRobert Lu, vice president, China National Chemical Corporation. "This also will create a new entity that can more effectively serve customers inChina and globally through new technologies and specialty fluoroelastomers."

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