Microgel Nantong Technology. [Photo/WeChat account: rudongfb]

Microgel Nantong Technology in Rudong county, Nantong, Jiangsu province and Shanghai's Dowill Paint signed a strategic cooperation deal for lotion product supply on Jan 26.

Dowill Paint has been involved in the coatings industry for many years, with annual sales now exceeding 3 billion yuan ($431.18 million). It has high requirements for the stability and cost control of core raw materials.

Previously, its core raw material resin relied heavily on external procurement, facing pressures of supply chain fluctuations and high costs.

Meanwhile, Microgel is the first enterprise in China to master all core technologies in this field. Microgel's core product, micro gel resin, has filled the technical gap in high-end micro gel resin and nuclear grade resin in China.

For Shanghai-based Dowill Paint, the new pact can boost the localization of lotion supply and reduce external dependence, as well as reduce costs and enhance product competitiveness.

For Microgel, the cooperation is expected to bring stable orders and provide support for capacity to be ramped up as well as new opportunities for market validation.

Founded in 2021, Microgel is a leading player in environmentally friendly coatings and specialty resins founded in 2021.

Reviewing the development process, Li Nuoyu, general manager of Microgel, said the biggest challenge lies in the customized installation and debugging of high-end special equipment. Another problematic issue is replicating complex laboratory techniques to industrial mass production without distortion, he noted.

"Many devices are customized non-standard devices and require extremely high installation accuracy. Our technical team has conducted hundreds of rounds of technical docking with suppliers." Li said.