R&P, Hop Zenith JV thermoplastic polyolefin compounding plant in China

R&P, Hop Zenith JV for thermoplastic polyolefin compounding plant in China

1:27 PM, 20th July 2015
R&P, Hop Zenith JV for thermoplastic polyolefin compounding plant in China

SINGAPORE: R&P Pte Ltd and Shanghai Hop Zenith Chemical Trading Co Ltd said that they have entered into a memorandum of understanding (MOU) to form a joint venture (JV) company in China to produce, distribute and market thermoplastic polyolefin (TPO) compounds, to the automotive sector in Asia-Pacific region.

The JV is expected to start with an installed capacity of 15 kilo tonne per annum and targets to increase to 50 kilo tonne per annum within 5 years of commencing production.

R&P was the designated toll compounder for ExxonMobil Chemical’s (EMC) exxtral grades and participated in the development of new products during this period. R&P licensed the technology from ExxonMobil Chemical in 2014 when EMC exited from the TPO market, to continue serving the automotive OEMs directly with its sterlene grades.

Hop Zenith, a distributor for EMC’s exxtral grades, was appointed by R&P in Dec 2014 as its main distributor to market its sterlene grades in China. Since 2011, Hop Zenith has built strong ties with various global automotive OEMs in China and achieved strong sales record for exxtral and sterlene, R&P said.

Both companies believe that together with a JV in China they will be able to serve the larger customer base more efficiently.

“With 70 percent of our current deliveries to global automotive OEMs in China, we look forward to having a production facility in China to strengthen the supply chain. China remains an attractive and important automotive market on a global scale,” said Y K Tan, chairman, R&P.

“Through this partnership we get the opportunity to strengthen our business portfolio. We expect to be able to serve more OEM customers in the Asia Pacific region more effectively through this joint venture with R&P,” said Wayne Zhang, director, Hop Zenith.

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