FERNDALE, Mich., Sept. 27, 2017 /PRNewswire/ -- Ferndale's Gage Products has signed a joint-venture agreement with Sichuan Sikeyonghe Technologies Co., Ltd. (SKYH) to provide automotive solvents and solvent recycling at a new facility to be built in Chongqing, China.
Construction of the plant on an 8.4-acre green-field site will begin in three to six months with production expected to start by the end of 2018. Investment in the project will total $8-10 million and be shared equally by the venture partners.
Called Gage Products (Chongqing) Co., Ltd., the joint-venture company will have up to 30 employees with plans to expand to other locations to meet China's rapidly growing need for automotive solvents and solvent-recycling services.
"Gage has been a pioneer in the development of sustainable, closed-loop manufacturing processes," said Dan Finkiewicz, Gage's chairman and president. "Our partnership with SKYH has tremendous growth potential and provides us with an opportunity to introduce industry-leading solvent technology to the world's largest automotive market.
"Our sustainable, environmentally responsible processes have proven to reduce emissions and have a positive impact on air quality. We look forward to working with our European and U.S. automotive customers with facilities in China, as well as having a chance to introduce our technology to a number of Chinese automakers and suppliers."
Xiaodong Lu, chairman of SKYH, noted that "Gage was carefully chosen as a partner because of its reverence for the environment and its concern for the health and well-being of workers in the automotive industry. With such parallel philosophies, our two companies are prepared for significant success and profitability."
Based in Ferndale, Michigan, Gage is an industry leader in automotive paint systems, solvents and specialty test and reference fuels and is considered a pioneer in the development of sustainable, closed-loop manufacturing processes for automotive paints. The company's Innovation Center laboratories have achieved ISO 9001:2008, ISO 14001:2004 certification, as well as earning top supplier ratings from the company's automotive customers.
A third-generation, family-owned business, Gage Products was founded in 1936 and has more than 30 years of automotive purge-solvent remanufacturing experience. The company recently dedicated new laboratory facilities in Ferndale to bring research-and-development, quality control and customer service laboratories in-house.
With a global customer base of more than 20 vehicle manufacturers and two dozen automotive and industrial suppliers, Gage provides high-performance solvent blends, as well as solvent reclamation and recycling services. It's automotive customers include GM, Ford, Chrysler, Nissan, Kia, Hyundai, Jaguar, Land Rover, Rolls Royce, Bentley, Honda, Toyota, Mercedes-Benz, Subaru, Volvo, Tesla, BMW, Ferrari, Aston Martin, Faraday Futures, Fisker, Freightliner, Peugeot-Citroen, Volkswagen and Fiat.
SOURCE Gage Products