- 50-50 joint venture
- CSP Victall to produce composite components, also compound of SMC
- Main focus: automotive, heavy truck & agriculture OEMs
Continental Structural Plastics (CSP) announced it has signed an agreement with Qingdao Victall Railway (Group) Co., Ltd., to form the 50-50 joint venture CSP Victall (Tangshan) Structural Composites Co., Ltd.
Under the terms of the agreement, CSP Victall will operate out of a 322,000 square-foot manufacturing facility located in Tangshan. The company will manufacture composite components for the automotive, heavy truck and bus, construction and agriculture markets in China. The joint venture will also compound and sell sheet molded compound (SMC) raw materials out of this facility.
Facility will include 4,000- and 3,000-ton presses and D-LFT line
Manufacturing equipment to be installed in the new CSP Victall facility includes 4,000- and 3,000-ton presses, a direct long fiber thermoplastic (D-LFT) line, an SMC compounding line, a paint line, and robotic routers. The facility will also feature the latest in dust control technology, including a centralized vacuum system and dust booths. The company expects to begin manufacturing operations in China by third quarter, 2015.
Vehicle light-weighting in China
The opportunity to provide lightweight vehicle components in China is significant and expected to grow. With the Chinese market on pace to produce nearly 20 million light vehicles and 1.5 million Class 7 – 8 heavy-duty trucks this year, there is a growing focus on reducing carbon emissions. The Chinese government has set forth a number of aggressive plans, including a goal established in 2009 to cut carbon dioxide emissions by as much as 45 percent from 2005 levels by 2020. And a more recent initiative mandating that at least 30 percent of new government vehicles be powered by alternative energy by 2016. In addition, the country is expected to become the top market for luxury vehicles by 2016, according to McKinsey & Company.