SNPE Matériaux Energétiques creates a Joint Venture with Chinese company TaiHang ChangQing in order to develop its automotive safety business in China

On October 11th 2010, SNPE Matériaux Energétiques (SME) and Taihang ChangQing (THCQ), whose AVIC (China Aviation Industry Corporation) holds 40% of stake, announced in Paris, the creation of a Joint Venture, controlled at 51% by SME and dedicated to the production of propellants for airbags applications in Suzhou, close to Shanghai (China).

SME, European leader in the field of energetic materials has been successfully supplying propellants to European airbags manufacturers for many years. SME now plans to extend its operations in Asia, notably in the purpose to offer to its European customers located in China, local sourcing of propellants based on the same technology and quality standards than in Europe.

THCQ is a Chinese company enjoying a strong growth in the automotive safety market, planning to implement new technologies and increase its production capacity in Suzhou.

“This Joint Venture agreement is a major milestone in our Automotive Safety business development. It strengthens our leader status in this field in offering our technology to the very fast growing Chinese market. Alliance of SME’s dynamism and technical know-how on one hand, and our partner’s industrial reactivity on the other hand, makes us feel quite confident in a short term success story”, said Hervé Austruy, Chief Operating Officer of SNPE Matériaux Energétiques.

The Joint Venture plans to start propellants production early 2012 and progressively increase its yearly production capacity up to 500 tons, in order to support both THCQ and occidental inflators manufacturers located in China.

SNPE Matériaux Energétiques is the GROUPE SNPE subsidiary responsible for research, development, production and marketing of energetic materials. It manufactures propellant grains and energetic subsystems for the defense, aerospace and automotive industries. The Saint-Médard-en-Jalles plant near Bordeaux includes both program teams and production facilities. The company’s expertise in energetic materials, unrivaled in Europe, is anchored in its Le Bouchet Research Center (CRB), coupled with in-depth knowledge of safety and environmental protection.
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