Mexico’s Kuo in Chinese SR joint venture

LSRUNQI

Mexico’s Kuo in Chinese SR joint venture
Monday, September 26, 2011
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; g% I( H" k* q! pMexico City, Mexico/Nanjing, China - Grupo KUO, S.A.B. de C.V. announced an agreement to form a 50/50 joint venture with the Chinese company Jiangsu GPRO Group (GPRO). This agreement stipulates that Grupo KUO and GPRO will establish a company named INSA GPRO (Nanjing) Synthetic Rubber Co. Ltd. and will jointly invest $60 million in a new plant located in Nanjing, Jiangsu Province, China, with an initial production capacity of 30,000 metric tons per year in its first phase. Grupo KUO’s wholly owned subsidiary, INSA (Industrias Negromex, S.A. de C.V.) will be the technologist of the new joint venture. The Nanjing plant will create 100 direct jobs and is expected to begin operations by the beginning of 2014. Construction will begin after approval by Chinese authorities. Grupo KUO, through INSA, already sells NBR to China, thus this venture is a natural step for the company to better serve the Chinese market.