13 March 2006 00:00 [Source: ICB Americas]
HERCULES INC.’S methylcellulose (MC) joint venture in China will provide the company a strong, cost-effective base for its construction products market.
Hercules and its partners will invest about $25 million to build a new, world-scale 12,000 metric-ton-per-year MC plant in Zhangjiagang, China. The facility is scheduled to start operations in the second half of 2006.
Hercules’ Aqualon business officially started its joint venture with Chinese partners on March 1 to become the leading MC producer in China with initial combined capacity of 6,000 metric tons in Luzhou and Zhangjiagang.
Hercules owns 40% of the joint venture, with Luzhou North Chemical Industries Co. Ltd. holding 40% and Jiangsu Feixang Chemical Co. Ltd. retaining 20%.
“This venture builds on our strong foundation for products used in the construction industry, such as tile cements, stuccos and plasters,” said Hercules president and CEO Craig Rogerson in an interview with CMR. “It gives us a low-cost position and competitive advantage to support our growth in Asia and globally.”
With the formation of the venture, Hercules becomes the number-two player in methylcellulose, behind Dow Chemical and establishes a strong platform for its construction business.
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