Hatco, Cargill Go to China


A year after forming an alliance to make synthetic esters in Brazil, Cargill Industrial Oils and Lubricants and Hatco Corp. have decided to take their partnership to China. The companies announced last week that they plan to build a plant in Shanghai to open next year.

Officials declined to disclose the cost of the project or size of the plant, but said it will be similar to the one the companies opened earlier this year in Mairinque, Brazil. The Shanghai facility will crush seeds into plant oils and use them to make esters and lubricants for refrigeration, automotive, industrial, metalworking and oil drilling applications.

China has the fastest growing manufacturing sector in the world, and there is increasing demand for high-performance esters and formulated synthetic lubricants throughout Asia, said Alex Kaufman, chief executive officer of Hatcos holding company, Kaufman Holdings. A facility in China will enable us to serve that fast-growing demand.

Construction on the plant is scheduled to begin later this year, with opening slated for late 2005. The companies said the joint venture will draw on Cargills strength in manufacturing and supply chain efficiency and Hatcos expertise developing and marketing high-performance synthetic esters.

Kaufman is based in Fords, N.J., and has four independent operating units that make and market a variety of specialty chemicals for industrial lubricant, automotive, aviation, refrigeration, cosmetic and personal care applications. Cargill Industrial Oils and Lubricants supplies natural fats and oils and derivatives to industrial markets. It is owned by Cargill, of Minneapolis, a giant provider of food andagriculturalproducts and services.

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