SINGAPORE--(BUSINESS WIRE)--R&P (Pte.) Ltd. (“R&P”) and Shanghai Hop Zenith Chemical Trading Co. (“Hop Zenith”), Ltd., are pleased to announce that both companies have entered into a memorandum of understanding (“MOU”) with the intention to form a joint venture (“JV”) company in China to produce, distribute and market Thermoplastic PolyOlefin (TPO) compounds, both locally and abroad, to the automotive sector in Asia-Pacific region.
R&P was the designated toll compounder for ExxonMobil Chemical’s (“EMC”) Exxtral™ grades from Sep 2008 to Oct 2014, and participated in the development of new products during this period. With its strong background in manufacturing and R&D, 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 with its STERLENE™ grades.
Hop Zenith, a distributor for EMC’s Exxtral™ grades from Oct 2011 to Oct 2014, 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™.
Both companies entered into the MOU with the belief that a JV in China will be able to better serve a larger customer base more efficiently through a combination of the strengths of both companies. Although a definitive agreement is being worked out, the JV is expected to start with an installed capacity of 15kta, and targets to increase to 50kta within 5 years of commencing of production.
“With 70% 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 with our customers there. China remains an attractive and important automotive market on a global scale. We, therefore, look forward to bright prospects for this joint venture partnership with Hop Zenith.” YK Tan, R&P Chairman, said.
“We are happy to have this opportunity to strengthen our business portfolio through a joint venture partnership with R&P. We expect to be able to serve more OEM customers in the Asia Pacific region more effectively through this joint venture partnership.” Wayne Zhang, Hop Zenith Director said.
For further enquiries, please email to sales@resinpts.com or go to www.resinpts.com.
