DuPont Bets Big on China with its Plastic Compounding Facility in Shenzhen

Date : Aug 09, 2017 Author : Nikhil Kaitwade Category : World News

Company’s largest facility in the world can be further expanded in the future if need be

It seems DuPont Performance Materials is a firm believer in the China growth story as the company has expanded its production capacity by inaugurating an engineering plastics compounding plant in the city of Shenzhen in Guangdong Province recently.

DuPont, a major player active in the plastics compounding market, has said that this facility is its largest site anywhere in the world and it replaces the previous site in the heart of the city that is to be rezoned for non-industrial uses. The new facility manufactures a variety of products that are sold in the plastic compounding market such as Crastin, Zytel polyamide, Delrin acetal resins, and Bynel adhesive resins to cater to the consumer, industrial, and automotive markets across the APAC region.

The state-of-the-art manufacturing unit incorporates the most advanced compounding technologies and includes several innovations that allow productivity to be increased and quality to be maintained. Most notably, DuPont actively collaborates with extrusion equipment builders during the R&D phase to devise a production setup that enables seamless transitions between diverse product families to achieve greater asset flexibility, reduce delivery cycles, and meet customer requirements. 

Randy Stone, President of DuPont Performance Materials, stated that the investment is a sign of their unwavering commitment to meet their customers’ needs in the plastics compounding market with additional production capacity, faster market response time, and greater asset flexibility. The facility has been designed keeping in mind future expansions even though it is already the largest plastic compounding facility in DuPont’s truly global production network.

DuPont opened its first plant in Shenzhen more than two decades ago in 1991 and the company is an active participant in China’s quest for sustainable development by way of leveraging their unique scientific capabilities in the plastics compounding market. The company mentioned that the new unit increases DuPont’s overall production statistics by a considerable amount.

The Shenzhen unit was built to increase efficiency with a higher output, including a setup that is anticipated to include substantial automation such as a packaging operation that is fully automated. This unit is one of the largest investments made by DuPont in its largest market China that is itself part of fast-growing APEJ. It perfectly complements their existing global chain in the plastics compounding market and is a strong indication of the company’s long term plans in China and the broader APEJ region.

It has been decided that the DuPont Performance Materials division will be separated from the rest of the company and made a part of Dow’s material business. This will be further spun off by Dow and incorporated as a new company which will have its base of operations at Midland, Michigan. The two other companies that should remain are likely to focus on seeds, pesticides, and the rest of DuPont’s remaining business. Shareholders of both companies recently approved this massive merger, but it still needs the necessary clearances from antitrust regulatory authorities.

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