DuPont performance coatings expands in China

16-Jul-2003

DuPont Performance coatings and Beijing Red Lion Coatings Company Limited, Beijing, have signed agreements forming two automotive coatings joint ventures, one in Beijing and the other in Changchun, China. Both ventures have received final government approval and will have a share distribution of 60 percent DuPont and 40 percent Red Lion. Operations have already begun.

Through the agreements, DuPont has increased its stake in an existing joint venture and has entered into a second joint venture, both named "DuPont Red Lion," with the objective of modernizing coatings production to support the Chinese automotive industry with locally manufactured and technically serviced products. At both sites, production will be supported by laboratories and application.

"In China, about 1.2 million cars and about 1.5 million commercial vehicles are produced annually," said John Lewis, vice president - DuPont Performance Coatings - Asia Growth Initiatives. "As one of the fastest growing automotive markets in the world, China will play an increasingly important role in our future business plans. Almost all international automotive manufacturers are planning major investments to increase production in China, which already has exhibited stable, double-digit annual growth rates. A major share of this growth will be generated by the Chinese operations of our current global customers such as Volkswagen, Ford Motor, General Motors, Citroen, Toyota and Nissan that are seeking reliable local production of high-quality paint systems. These two plants will form the basis for serving our customers and achieving optimum penetration of the Chinese market."

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