Tessenderlo Group to start automotive compounding in China
New plant for automotive speciality compounds in 2011
Tessenderlo Group (NYSE Euronext:TESB) has signed, through its French subsidiary CTS, an agreement with the Chinese authorities to start up a new production plant. This plant will produce thermoplastic elastomers (TPEs) and PVC slush compounds for its customers in the automotive industry.
Production is scheduled to start in autumn 2011, with employment growing progressively to approximately 70 people. The new plant will be located in Changsu (Jiangsu province), about 90 km from Shanghai.
CTS Automotive Compounds (Changsu) Ltd. will produce for the Asian market with 3 production lines. The products that will be manufactured are CTS Tefabloc® compounds (TPEs) for airbag covers, sealing applications, cables and interior parts, as well as the Marvyflo® compounds (PVC slush moulding) for dashboards and door panels.
This investment is in line with the strategy of Tessenderlo Group’s Business Unit Compounds, which aims to increase its presence in the growing automotive markets, especially in Asia.
Albert Vasseur, Tessenderlo Group’s Director of Plastics Converting, explains: “With our know how and expertise in working with customers in the automotive world, we are confident that we can grow further into becoming a leading supplier of automotive speciality compounds in China.”
China is the largest automotive market in the world and it continues to show rapid growth. The Shanghai area offers an excellent logistic network and access to the main automotive customers.
CTS, a member of Belgium-based Tessenderlo Group, has production sites in France and Poland, where it develops and produces TPE and PVC compounds. CTS enjoys a very strong presence in automotive applications, and has the ambition to continue to grow as a worldwide leader in these automotive applications.