Zhonghao Chenguang Chemical Research Institute Company Limited and DuPont Fluoropolymer Solutions have come together to announce a 50:50 joint venture (JV) that will focus on providing industry-leading science and technology solutions, as well as high-performance sustainable applications to the China market. Chenguang is a subsidiary of ChemChina. The fluoroelastomer market in China has been experiencing rapid development over the past few years, and with the two companies forming a JV to produce and market fluoroelastomer pre-compounds and gums in China, supply volumes are poised to witness an expansion.
Fluoroelastomers are regarded as being very critical to a number of applications thanks to their unique characteristics. Some of these applications include the design of efficient and safe automobiles, building more durable chemical process equipment, aiding the development of high-performance airplanes, and assisting the development of solutions centered on renewable energy.
Even as the two companies embark on this strategic journey, they continue to discuss new areas where collaboration can be considered. The new JV will be known as DuPont Haohua Chenguang Fluoromaterials (Shanghai) Co., Ltd. The fluoroelastomer products being sold under this company will be branded Viton® and Chenguang.
The companies added that the new JV will further the technology leadership of both companies and expand their manufacturing footprint at the same time. In addition to these initiatives, the two companies will jointly invest in the establishment of a new Shanghai-based pre-compound manufacturing unit.