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Samsung Total to build a PP compounding facility in China
22
Apr '08
Total Petrochemicals announces that its joint-venture with Samsung, Samsung Total Petrochemicals, will build a polypropylene compounding facility in Dongguan, which is in the Pearl River area of Guangdong province, in the South of China.

The project supports Samsung Total Petrochemical's strategy to maintain and advance its current leadership position in the higher value-added sector of the polypropylene compounds market. This added capacity will allow the Company to market about 20% of its total polypropylene production in the form of compounds while improving service to the customer through local production. The investment amounts to € 6 million. Completion is forecast for early 2009.

The facility, comprised of three lines, will have a total capacity of 28,000 tons per year. The products will supply the south China market, targeting the Electronics and Household Electrical Appliances sector including refrigerators, dishwashers and air conditioners.

“We all know that the production of polyolefins from China and from the Middle East is forecast to increase dramatically over the next few years.” said Graeme Burnett, Total Petrochemicals Senior Vice President, Asia & Middle East. “It is therefore important to have a strategy for sales in China that is based on being seen as a local supplier as well as being able to differentiate oneself from other suppliers in terms of quality and added value for the customer. We believe that this project not only makes sense from an economic perspective, but also is in line with this strategy”.


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