Singapore's modified plastics company establishes joint venture in China

[China Jiuzhi Plastics Network] Singapore's modified plastics company R&P (Pte.) Ltd. announced that they have established a joint venture with a Chinese partner to produce, distribute and sell thermoplastic polyolefin (TPO) compound products. TPOR&P (Pte) Ltd. and Shanghai Wozhen Chemical Trading Co., Ltd. have reached a memorandum of understanding on joint ventures in China. The joint venture was established to produce, distribute and sell thermoplastic polyolefin (TPO) compound products to the automotive industry in the Asia Pacific region, locally and globally. From September 2008 to October 2014, R&P was appointed by ExxonMobil Chemical's Exxtral product (tollcompounder) and participated in the development of new products during this period. With its strong background in production and R&D, R&P acquired the latter's technology license in 2014 when ExxonMobil Chemical exited the TPO market, continuing to supply STERLENE products directly to auto parts manufacturers.
From October 2011 to October 2014, Wo Zhen served as a distributor of ExxtMoal's Exxtral specification products. In December 2014, the company was appointed by R&P as its main distributor in China for its STERLENE products. Since 2011, Wo Zhen has established close business contacts with various Chinese multinational automakers and component manufacturers, and has achieved good results in the sales of Exxtral and STERLEN specifications.
Both parties believe that the establishment of a joint venture in China will help to combine the advantages of both, so as to better and more effectively serve a larger customer base. Although the final agreement is still in the process of negotiation, the joint venture is expected to achieve an installed capacity of 15 kilotons per year at the beginning of the establishment, and plans to increase the production capacity to 50 kilotons per year over five years.
R&P Chairman YKTan said: "At present, 70% of the company's products are sold to multinational automotive equipment manufacturers in China, so we expect to establish a production plant in China to enhance the supply chain service capabilities for Chinese customers.
Jiuzhi Plastics Network

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