DuPont Announces US$1b Plant

US conglomerate DuPont yesterday announced it will invest US$1 billion in a titanium dioxide (TiO2) plant in China the company's largest single investment project outside the United States. It has previously spent a total of US$700 million in China since entering the country in 1989.

The wholly-owned new plant, located in Dongying, a city in East China's Shandong Province, will serve the coatings, plastics and paper industries for both domestic and overseas customers.

The money includes the initial DuPont investment, facilities installed by the city and investment in suppliers for the plant.

After completion in 2010, the plant will have an initial annual capacity of 200,000 tons of TiO2. A second line may be added later, company officials said at the plant's signing ceremony held in Beijing.

Thomas G. Powell, president of DuPont Greater China, said once receiving final approval from the government this plant will bring to Dongying the world's most technologically-advanced, environmentally-sound manufacturing process for titanium dioxide, plus 400-500 jobs.

He said the plant will incorporate the latest technologies for manufacturing, safety and management of waste.

The new factory will be built to standards comparable to those required in the United States, and will be compatible with the surrounding community, Powell said.

"We will keep close contact with the local government to make sure we comply with the rules on environmental protection," he said.

Powell said that the move demonstrates the company's commitment to China and to serving its customers in Asia and worldwide.

"With this, and other recently announced investments in Shenzhen, Changshu and Shanghai, we are well ahead of our previously-announced plan to double our investment in China by 2010," he noted.

In May, Powell sketched out plans for the company's coming activities in China, including the expansion of a packaging and industrial polymers plant in Shenzhen, Guangdong Province, and an integrated fluorochemical manufacturing site in Changshu, Jiangsu Province.

In Shanghai, DuPont will open its research and development centre today. With investment totalling US$20 million, the centre will be the firm's largest laboratory in Asia.

The company expects to more than double its sales in China in the next five years.

"Thanks to the fast growing economy in China, DuPont has been enjoying healthy business growth in this country and has the momentum for further advancement," Powell said.

The firm's revenue in China increased by 32 per cent last year to US$1.4 billion, making the country one of DuPont's fastest-growing regional markets. Besides China, DuPont's other key markets are India, Brazil and Eastern Europe.

DuPont Titanium Technologies is the world's largest manufacturer of titanium dioxide.

The company operates plants at DeLisle, Mississippi; New Johnsonville, Tennessee; Edge Moor, Delaware; Altamira, Mexico; Uberaba, Brazil; and Kuan Yin in Taiwan, all of which utilize the chloride manufacturing process.

DuPont, founded in 1802, operates in more than 70 countries and regions, offering a wide range of products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.

On the Chinese mainland it has 33 wholly-owned and joint venture manufacturing facilities, with the total workforce of 5,300.

China Daily