WILMINGTON, Del., Oct. 12, 2000 - DuPont and Lianyungang Zhongshan Spandex
Company Limited today announced their intention to form a 50/50 joint venture in the
People's Republic of China to manufacture and sell generic spandex fibers. Terms were not
This joint venture is the first alliance DuPont has formed in China to pursue its generic
spandex strategy. It is the third in a series planned by DuPont in key growth markets,
following the recent formation of joint ventures with Saehan in Korea and Shinkong in
Taiwan. The Chinese joint venture will expand capacity from 4,000 tons a year to 7,500 tons
a year, focusing primarily on the Chinese market.
"We are pleased to partner with Lianyungang, the pioneer and the largest spandex producer
in China, to accelerate our participation in the huge Chinese textiles industry," said Steve
McCracken, group vice president and general manager for DuPont Lycra® . "The spandex
market in Asia, and particularly China, is experiencing rapid growth. It has become one of
the largest markets in the world with strong demand for spandex-containing garments for both
export and domestic consumption. In pursuing our generic spandex strategy through
alliances, DuPont is quickly becoming a leading player in Asia through partnerships with
strong local manufacturers."
DuPont's joint venture with Lianyungang in China builds on DuPont's four decades of strength
in technology, quality production and global presence, and Lianyungang's strengths in local
market access and cost effective operations.
"This is an excellent partnership opportunity for our company," said Mao Yi Ping, president of
Lianyungang. "We have been searching for ways to further excel in our spandex production
to prepare for the potential market changes after China enters the World Trade Organization.
We believe that with DuPont as our partner, including their support in state-of- the-art
technology and world-class management, we will now able to establish a much stronger,
longer-term competitive position in the spandex industry."
"DuPont has no plans to integrate its alliances in generic spandex with its Lycra® business.
The joint venture with Lianyungang will maintain separate management and distribution to
market," said J. S. Kim, global business director, DuPont Generic Spandex.
Lianyungang Zhongshan Spandex Company is located in Lianyungang in northern Jiangsu
Province, one of the largest spandex consuming provinces in China. Lianyungang began
production in 1992. The company resides in a nationally sanctioned economic and
technology development zone with full support for its well-maintained facilities and
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