Page 48 - Plastics News July 2018

Business news

Cooper Standard looks to diversify DuPont eyes $40 million upgrade

with new acquisition to Chinese compounding plant

ooper Standard Automotive Inc. has entered an owDuPont Specialty Products is boosting production
Cagreement to acquire Lauren Manufacturing and Dand research in China with a $40 million upgrade
Lauren Plastics — two subsidiaries of New Philadelphia, to a compounding facility to satisfy the quickening
Ohio-based Lauren International Ltd. — for an undisclosed pace of technological change there, especially in the
amount. Lauren's manufacturing and automotive industry.But even when that investment
plastics businesses produce extruded at its engineering plastics facility in Shenzhen comes
and molded parts of organic, silicone, online by mid-2019, it won't quench China's thirst for
materials, said Randy Stone, president of the division's
thermoplastic and engineered polymer Transportation and Advanced Polymers unit. "We need to
products. The units specialize in put more polymer capacity in Asia. So we're evaluating
sealing solutions for industrial and options in China right now to do that," he said, in a
specialty automotive applications. late April interview at Chinaplas in Shanghai.DuPont's
"We're excited about the acquisition," China-based R&D efforts will get a boost when the
said Keith Stephenson, executive vice Dow Shanghai labs merges with DuPont's Shanghai labs
president and chief operating officer of by year's end,
Cooper Standard. "We've spent a lot of time identifying as part of the
target companies that we think will fit our business profile, merger of the
but also would be complementary to what we're doing and two companies,
allow us to accelerate our growth in the non-automotive said Tina Wu,
space within our core technology. Asia Pacific
managing
Lauren rose to the top of that list when we scanned dir ecto r o f
the non-automotive sealing suppliers. We engaged with Transportation and Advanced Polymers.Wu anticipates
their leadership and felt very, very strongly that this was synergies from the joined research efforts.Electric
a quality business and a great cultural fit with Cooper vehicles are also a key area of research, gobbling up
Standard." The deal is pending regulatory approvals and "a disproportionate amount of R&D spending by key
consent from the related parties. Stephenson said the firm OEMs," Stone said.For example, DuPont, together
doesn't anticipate any issues and expects the deal to close with key Chinese automotive tubing supplier Taizhou
sometime in the third quarter. All employees, including ChangLi Plastics Co. Ltd., developed cooling pipes
for electric vehicle battery packs based on DuPont's
Lauren's leadership team, will transfer with the business.
nylons. Also for electric vehicles, DuPont was showing
Kevin Gray, chairman, CEO and president of Lauren two non-halogenated flame-retardant nylons for
International, said Lauren was contacted by an investment housing lithium-ion batteries."High-temperature nylons
banker who pinpointed his company as one that would fit is our fastest-growing product line," Stone said.The
within Cooper Standard's Industrial Specialty Group. He company also was showing products designed for today's
confirmed that Cooper Standard was the only suitor for hotter-running internal combustion engines.Medical
the rubber and plastics manufacturing units. Stephenson engineering plastics as yet makes a relatively small
said Lauren shares a lot of common values with Cooper part of DuPont's portfolio, but Stone foresees benefits
from the Dow medical silicones business joining DuPont.
Standard, specifically a commitment to its employees and
a strong sense of giving back to the community. Cooper "We think between DuPont and Dow we've got the right
Standard said the move will further expand the markets legal and regulatory product stewardship and good
served by its Industrial and Specialty Group, which manufacturing practices," the native South Dakotan
specializes in accelerating growth and maximizing the said. "We think that's a good long-term growth sector
value of its products and technologies in non-automotive for us."
and specialty markets.

Plastics News July 2018 48