DuPont Performance Coatings to expand business in China

Citation

(2003), "DuPont Performance Coatings to expand business in China", Pigment & Resin Technology, Vol. 32 No. 6. https://doi.org/10.1108/prt.2003.12932fab.011

DuPont Performance Coatings to expand business in China

DuPont Performance Coatings to expand business in China

DuPont Performance Coatings and Beijing Red Lion Coatings Company Limited, Beijing, have signed agreements forming two automotive coatings joint ventures, one in Beijing and the other in Changchun, China. Both ventures have received final government approval and will have a share distribution of 60 percent DuPont and 40 percent Red Lion. Operations have already begun.

Through the agreements, DuPont has increased its stake in an existing joint venture and has entered into a second joint venture, both named "DuPont Red Lion," with the objective of modernizing coatings production to support the Chinese automotive industry with locally manufactured and technically serviced products. The joint capacity of the two joint venture plants will start at 20,000 tons of paint per year. At both sites, production will be supported by laboratories and application facilities to ensure that the products meet the needs of local Chinese customers. Financial terms of the agreements were not disclosed.

"In China, about 1.2 million cars and about 1.5 million commercial vehicles are produced annually. As one of the fastest growing automotive markets in the world, China will play an increasingly important role in our future business plans," said John R. Lewis, Vice-President – DuPont Performance Coatings Asia Growth Initiatives. "Almost all international automotive manufacturers are planning major investments to increase production in China which already has exhibited stable, double-digit annual growth rates. A major share of this growth will be generated by the Chinese operations of our current global customers such as Volkswagen, Ford Motor Company, General Motors, Citroën, Toyota and Nissan that are seeking reliable local production of high-quality paint systems. These two plants will form the basis for serving our customers and achieving optimum penetration of the Chinese market," said Lewis.

DuPont Red Lion Coatings (Beijing) Co., Ltd

In the Chinese capital of Beijing, DuPont Red Lion will build a new production site for OEM paints as well as an application center. Following completion, about mid-2004, production will be relocated from the present plant in Beijing to the new one. As a result, DuPont Red Lion will have a state-of-the-art plant for the production of automotive coatings, including waterborne products that will be introduced in China in the near future.

DuPont is increasing its stake in this joint venture with Beijing Red Lion Coatings Company Limited, through acquiring the interests previously held by Akzo Nobel Coatings International B.V.

DuPont Red Lion Coatings (Changchun) Co., Ltd

The Changchun site in the North of China, in the vicinity of First Automotive Works and its joint venture with Volkswagen, is to be expanded and modernized at an incremental cost of $15 million (USD). This investment will enable DuPont Red Lion to supply its customers with coatings that meet the highest international standards for both product quality and technical service.

The joint venture in Changchun, was originally established in 1995 by TOA International Company, Ltd (Thailand) and Changchun City Paint Factory (CCPF) as "TOA-CPF Paints Co. Ltd" (TCPC). Red Lion acquired the interest of CCPF in 2001. DuPont is acquiring the interests of TOA in the previous venture.