China’s leading manufacturer of fluorine chemical and polymer products, Shanghai 3F New Materials, said in an announcement that the company has signed an agreement of intent with DuPont China Holding to establish a joint venture in 2012.The 50-50 venture, to be located in Changzhou, will make a “significant investment in new capacity and technology” and mainly produce polytretrafluoroethylene and perfluorinated ethylene propylene copolymer resins.
Based on the general agreement, the company will conduct in-depth negotiations 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 about $420m, compared with the same period last year. Net profit increased tenfold to $102.6m. The company attributed the rapid growth to soaring market demand and product prices.
Global consumption of PTFE exceeds 220 million pounds, Huachuang Securities noted in a research report. Despite overcapacity outside China, there is a shortage of PTFE inside the country.
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 seven-year-old venture with 3F in Changshu, China – DuPont 3F Fluorochemicals Changshu – which makes refrigerant blends.
