DuPont said it is spending US$80m to build a new factory in Zhangjiagang, Jiangsu Province in East China.

The new facility will produce compounded high-end engineering plastics and adhesives. The site is expected to become operational in 2020 with expansion to the end of 2023.

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DuPont managers and Zhangjiagang government officials signed the deal at a ceremony in Shanghai at the China International Import Expo (CIIE).

The factory, to be built at the Yangtze River International Chemical Industrial Park, will support growing demand for the Transportation & Advanced Polymers (T&AP) business' specialised materials.

Investment in new compounding lines will be focused primarily on DuPont Zytel nylon engineering plastics, Delrin acetal resins, Hytrel thermoplastic polyesters, and Multibase thermoplastic elastomers (TPEs), lubricants and specialty silicone materials. The site plans to include new production lines for automotive adhesives, and intends to manufacture additional specialty products in the future, enabling it to be the first multi-business manufacturing facility in China for the new DuPont.

"This investment reinforces our commitment to China and the Asian market where we see strong growth potential across our businesses," said Randy Stone, president of T&AP.

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"Our new manufacturing facility will position us well to support anticipated growth in the automotive sector due to strong customer demand for our advanced polymers and solutions from end users such as electric and hybrid vehicle manufacturers."