11 September 2000 12:56 [Source: ICIS news]
LONDON (CNI)--French specialty chemicals company Rhodia announced Monday it has set up a subsidiary in China to produce vanillin for local and Asian markets.
The new company - Ruahai Fine Chemicals - was formed after Rhodia bought the vanillin business of Chinese firm Xuebao Fine Chemicals, based in Haining, Zhejiang province.
Rhodia said in a statement that its new China subsidiary will produce about 1000 tonne/year of vanillin and market the product under the brand name Snow Orchard. The subsidiary will be supplied with the raw material, catechol-based guaiacol, by a Rhodia joint venture company - Jade Fine Chemicals, of Wuxi, Jiangsu province.
The new subsidiary business is Rhodia's third major vanillin operation. The French group already has two plants - in Saint Fons, France, and Baton Rouge in the US state of Louisiana.
Ruahai Fine Chemicals is managed through Rhodia's perfumery and specialties division. No-one was available at Rhodia to give further information on the new venture.
The vanillin deal was announced only days after Rhodia that it is developing its rare earths activities in China through a new joint venture with Chinese partners Beijing Founder Group and Liyang Licheng Economic General Industrial.
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