Dec 18 2006
Rohm and Haas Company and Weihai Jinhong Polymer Company, Ltd. today announced their agreement to form a new joint venture, Jinhong Rohm and Haas Chemicals Company Ltd (JinHaas), designed to deliver a complete range of quality plastics additives products and superior technical support to the building and construction and PVC packaging segments of the Chinese market. The joint venture is currently pending for Chinese government approval.
The new manufacturing joint venture, to be based at Jinhong’s Weihai City plant, will produce methacrylate butadiene styrene (MBS), acrylic impact modifiers (AIMs) and acrylic processing aids for distribution in China, as well as other emerging markets. It combines the strong brand reputation, distribution network, extensive product and process technology, and Environmental, Health and Safety (EHS) experience of Rohm and Haas Company with the significant manufacturing capacity, product offering and regional marketing and sales expertise of Jinhong Company.
According to Joan Schuller, Rohm and Haas Asia-Pacific Region General Manager, Plastics Additives, JinHaas has been formed to address the specific needs of the rapidly growing plastics additives market in China
“With this joint venture, we will become the first multinational company with a significant manufacturing footprint of plastic additive polymer in China.” Said Schuller. “We are committed to a leadership position, and to growth in the China plastics additives market.
The addition of the local manufacturing facility will allow Rohm and Haas to provide an extensive line of products that are engineered to maximize value by meeting the very specific requirements of the Chinese market. “Having a local presence will allow us to be more responsive to our customers' product needs and technical service requests,” Schuller added. “It is a great addition to our current Asia-Pacific manufacturing network which includes our Singapore and Nishiki, Japan facilities.”
“Our companies share the same vision: to be the leading PVC additives supplier in China,” said Mr. Xu DongGuo, Chairman of Weihai Jinhong. “This joint venture brings together our individual strengths to create an organization that will offer the most complete array of plastics additives products and technical services available to the Chinese market.” Mr. Xu also noted that both companies share the same values in the areas of ethics, high quality products, leadership, customer service and care for the environment. “Our companies are a mutually good fit for this partnership.”
According to the terms of the venture, Jinhong will contribute its Weihai City plant, and Rohm and Haas will contribute cash to jointly improve manufacturing operations. The structure of the joint venture gives Rohm and Haas 51 percent ownership. It is expected to be operational in first quarter 2007.
The JinHaas joint venture provides both parties with increased market penetration and growth potential that would be significantly more costly and time consuming for either company to achieve individually. Rohm and Haas expects to double its plastic additives sales in China by 2010.