Manufacturing News

Changchun gets joint venture plastics plant

Chinese plastic compound supplier Jilin Xindongtai Engineering Plastics Co. has formed a 50-50 joint venture with Japan's Sumitomo Chemical Co. to build a polypropylene plant in Changchun.

The factory targets automotive customers in north China and will be Sumitomo Chemical's second in the region.

The new plant, in suburban Changchun's Gongzhuling economic development zone in Jilin province, will start operations in January with annual production of 20,000 metric tons, Sumitomo Chemical said in a statement.

Xindongtai supplies plastic compounds to China FAW Group Corp., of Changchun. The new joint venture is called Jilin Dongcheng Sumika Polymer Compounds Co.

"Chinese automakers have rapidly been increasing their presence in their local market over recent years," Sumitomo Chemical said in a statement, "and serving these customers will be a key to success for Sumitomo Chemical."

The new investment comes just three months after Sumitomo Chemical announced plans to build a polypropylene plant in Dalian, with an annual production capacity of 10,000 metric tons.

That factory will be a 50-50 joint venture between Sumitomo Chemical and its Zhuhai Sumika Polymer Compounds Ltd. subsidiary. That operation is in the city of Zhuhai in Guangdong province.

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