Lati Industria Termoplastici and RadiciGroup Plastics join forces to develor or the Chinese market

RadiciGroup Plastics and Lati Industria Termoplastici S.p.A. have signed a letter of intent to form a fifty-fifty joint venture to develop the Chinese engineering plastics market.

The constant growth of this Asian market offers attractive opportunities for businesses with a strong international presence and a wide range of products.

The surging Chinese auto industry, the huge potential arising from the modernization of the electric power grid and electrical equipment, the growing pool of domestic appliance buyers, the large investments in infrastructure, the increasing hunger for high quality goods: these are the factors that will have an increasing influence on Chinese growth, which up to now has been tied to the competitive advantage of low-cost labour. For these reasons, the two Italian companies have decided to take the plunge and join forces in China. Lati S.p.A. is among the world leaders in self-extinguishing compounds for the electrical and household appliance sectors. In the plastics sector, RadiciGroup is a leader in engineering plastics for automotive applications. RadiciGroup Plastics has two strengths that ensure high product and service quality standards: the vertical integration of its polyamide (nylon) chain and its strong international presence.

Lati S.p.A. is a highly specialized company with a wide range of products that can meet a multitude of requirements, including those of high technology sectors.

These strong points will enable the companies to meet the needs of the most demanding customers.

The joint venture's headquarters and production base will be in Suzhou, 80 km from Shanghai, at the RadiciPlastics Suzhou Co., Ltd. compounding plant, started up by RadiciGroup in April of this year.

The joint venture will manufacture and sell a broad range of engineering plastics under their corresponding brand names in the Southeast Asian market - China, Hong Kong, Taiwan and Singapore, in particular.

Furthermore, the joint venture will market all the compounds produced by both parent companies that, for the time being, will not be manufactured at the Chinese site, as the production lines are not yet installed.