07 December 2004 13:42 [Source: ICIS news]
LONDON (CNI)--Degussa said Wednesday it has signed an outline agreement to buy an 80% stake in Chinese high performance polymer producer Changchun Jida High Performance Materials (Jida New Materials).
The German specialty chemicals company said the precontract with Jida New Materials, a subsidiary of Jilin University in Changchun, Northern China, governs cooperation on high performance polymers polyetherether ketone (PEEK) and polyether sulfone resin (PES).
It follows the signing earlier this year of a letter of intent with Jida New Materials for the joint development, production and marketing of the two products.
The final joint venture contracts are subject to approval by Degussa's supervisory board. A spokeswoman for Degussa said this decision will be made in the first half of 2005.
Jida New Materials has a 500 tonne/year PEEK production facility at ?xml:namespace>
The Chinese company also has a 300 tonne/year PES plant at Changchun.
Degussa said in a statement today that the cooperation with Jida will enable it to strengthen its high performance polymers business unit, which makes specialty polymers as well as high-quality, high performance polymers based on polyamide 12 and polybutylenterephthalate.
Utz-Hellmith Feltch, chairman of Degussa, said the Jida project represented a model for cooperation between German and Chinese companies.
He added: “In this particular case, Jida New Materials and
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