Tessenderlo Group inaugurates new CTS plant for automotive specialty compounds in China

Tessenderlo Group (NYSE Euronext:TESB) has officially inaugurated on April 16 its new CTS production plant in Changsu, China. The new plant will produce high-performance, thermoplastic elastomers (TPEs) and slush molding compounds for automotive applications.

CTS occupies a leading position in the automotive market with compounds for airbag covers, glazing seals and dashboard skins. CTS Automotive Compounds (Changsu) Ltd. will produce the Marvyflo® and Tefabloc® brands that have been successfully marketed by CTS in China and Asia for more than 10 years.

Tefabloc® TPEs are used in airbag covers, sealing applications, cables and interior parts. The Tefabloc® TPE has a lower density than traditional rubber solutions like EPDM. In some specific parts, the weight reduction is more than 30%, contributing significantly to cars consuming less. The Marvyflo® free flowing powder compounds are the reference material for slush molding of dashboards and door panels, as well as other interior surfaces. The new development "lightweight Marvyflo” will allow for 10% weight reduction of the dashboard skins.

At the inauguration ceremony, Albert Vasseur, Director Plastics Converting, stated: "We are proud to open this state of the art production facility, that will supply our Asian customers with the CTS quality standard they are counting on.”

This investment is in line with the strategy of Tessenderlo Group's business unit Compounds, which now increases its presence in the growing automotive market in Asia, where all major global car producers (OEMs) and producers of automotive parts (TR1/TR2) are present.