R&P & Hop Zenith ink JV on TPO compounds
July 21, 2015 - China
R&P (Pte.) Ltd. and Shanghai Hop Zenith Chemical Trading Co. have initiated a joint venture (JV) to produce, distribute and market Thermoplastic PolyOlefin (TPO) compounds to the automotive sector in Asia-Pacific region.
R&P was the designated toll compounder for ExxonMobil Chemical’s Exxtral grades from September 2008 to October 2014, and participated in the development of new products during this period.
“R&P licensed the technology from ExxonMobil Chemical in 2014 when ExxonMobil Chemical exited from the TPO market, so as to continue serving the automotive OEMs directly,” a press release said.
Hop Zenith, a distributor for Exxon’s Exxtral grades was appointed by R&P in December 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.
“The JV has been initiated with an aim to be able to better serve a larger customer base more efficiently through a combination of the strengths of both companies,” the press release added.
Although a definitive agreement is being worked out, the JV is expected to start with an installed capacity of 15 KTA, with a target to increase to 50 KTA within five years of commencing production.
“With 70 per cent 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,” YK Tan, R&P chairman said.
China remains an attractive and important automotive market on a global scale and so we look forward to bright prospects for this joint venture partnership with Hop Zenith,” Tan too added.
“We are happy to have this opportunity to strengthen our business portfolio through a joint venture partnership with R&P,” Wayne Zhang, Hop Zenith director also said.
He further added, “We expect to be able to serve more OEM customers in the Asia Pacific region more effectively through this joint venture partnership.” (AR)
R&P was the designated toll compounder for ExxonMobil Chemical’s Exxtral grades from September 2008 to October 2014, and participated in the development of new products during this period.
“R&P licensed the technology from ExxonMobil Chemical in 2014 when ExxonMobil Chemical exited from the TPO market, so as to continue serving the automotive OEMs directly,” a press release said.
Hop Zenith, a distributor for Exxon’s Exxtral grades was appointed by R&P in December 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.
“The JV has been initiated with an aim to be able to better serve a larger customer base more efficiently through a combination of the strengths of both companies,” the press release added.
Although a definitive agreement is being worked out, the JV is expected to start with an installed capacity of 15 KTA, with a target to increase to 50 KTA within five years of commencing production.
“With 70 per cent 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,” YK Tan, R&P chairman said.
China remains an attractive and important automotive market on a global scale and so we look forward to bright prospects for this joint venture partnership with Hop Zenith,” Tan too added.
“We are happy to have this opportunity to strengthen our business portfolio through a joint venture partnership with R&P,” Wayne Zhang, Hop Zenith director also said.
He further added, “We expect to be able to serve more OEM customers in the Asia Pacific region more effectively through this joint venture partnership.” (AR)