The Singapore-based Textile Effects division of Huntsman Corp. and China’s Jihua Group have signed a strategic partnership agreement under which the two companies will cooperate in a wide range of areas to jointly capitalize on the growing need for dye and chemical solutions for China’s textile sector.
The partnership will help the companies speed up their supply chains to react more quickly to customers’ demand and increase cost efficiency.
The forming of the strategic partnership comes two months after Huntsman Textile Effects, a major innovator with more than 700 patents, announced it had granted a sole license to Jihua for manufacturing, sales and marketing of Huntsman’s patented reactive Super Black dyes in China. With the agreement, Huntsman and Jihua are now selling the Super Black products under their respective trade names. In addition, Huntsman also awarded Jihua Group the right to sublicense its patented Super Black dyes in China.
The strategic alliance will help further strengthen the two firms’ capabilities of serving their customers in China and speed up their expansion in the country, while aiming to raise standards for the sector. Investment in China’s textile industry grew 160 percent year-on-year in the first six months of this year to 13.1 billion yuan, or $1.93 billion at current exchange, pointing to a marked expansion by textile manufacturers, according to China National Textile Apparel Council. This is also expected to result in growing need for chemical solutions.
“This strategic alliance will allow us to create greater cost and operational efficiencies and we can react quicker and be more nimble to our customers in China,” said Rohit Aggarwal, president of Huntsman Textile Effects. “Huntsman is now even better positioned to capture the emerging market opportunities in China. The alliance will also help to pave the way for us to enter into further discussions with Jihua Group to broaden our cooperation to include other reactive dyes and intermediates in the future.”
Shao Bojin, chairman of Jihua Group, said the strategic partnership will help the companies “jointly tap into the Chinese market, which promises huge opportunities.”
Huntsman Textile Effects is a leading global provider of high-quality dyes and chemicals to the textile and related industries, with six primary manufacturing facilities around the world, including facilities in Panyu and Hangzhou, China.
Jihua Group is one of the top 500 Chinese private companies and a market leader in China for the manufacture of dyes and intermediates, headquartered in Hangzhou, with products marketed to 86 countries globally.