Shanghai 3F plans new JV with DuPont

2011-09-28 (Source: From PLASTICS NEWS CHINA in it’s website http://www.plasticsnews.com)

SHANGHAI (Sept. 23, 2011) -- China’s leading manufacturer of fluorine chemical and polymer products, Shanghai 3F New Materials Co. Ltd., said in a Sept. 23 announcement that the company has signed an agreement of intent with DuPont China Holding Co. Ltd. to establish a joint venture in 2012.The 50-50 JV, to be located in Changzhou, Jiangsu province, will make “significant investment in new capacity and technology” and mainly produce PTFE and FEP resins.

Based on the general agreement, the company will conduct in-depth negotiation with DuPont and a further feasibility study of the project, publicly traded 3F said.

In the first half of 2011, 3F more than doubled its operating revenue to 2.7 billion yuan (about US$420 million), compared to the same period last year. Net profit increased 10-fold to 685.6 million yuan (US$102.6 million). The company attributed the rapid growth to soaring market demand and product prices.

Global consumption of PTFE exceeds 100,000 metric tons, Huachuang Securities noted in a research report. Despite the overcapacity outside of China, PTFE in China faces a shortage of supply in China.

The partnership is also expected to bring a technological breakthrough to the Chinese fluoropolymer industry, which is expanding at a 20-plus percent compound annual growth rate, the report added.

DuPont already has a 7-year-old JV with 3F in Changshu, DuPont 3F Fluorochemicals Changshu Company, Ltd., which makes refrigerant blends.