Asahi Kasei, Bluestar form joint ventures for China mPPE business

05 September 2017 11:48 Source:ICIS News

SINGAPORE (ICIS)--Asahi Kasei has entered into a joint venture deal with China National Bluestar (Group) Co Ltd to produce and sell modified polyphenylene ether (mPPE) in China, the Japanese producer said on Tuesday.

The companies aim to produce 30,000 tonnes/year of polymer PPE (polyphenylene ether) and 20,000 tonnes/year mPPE.

Financial details of the deal were not disclosed.

“Asahi Kasei and Bluestar will now begin studying the construction of manufacturing facilities for 2,6-xylenol, PPE, and mPPE, and proceed with detailed evaluation of the economics of the joint business targeting a final investment decision by March 2018,” Asahi Kasei said.

Production will use Bluestar’s technology for 2,6-xylenol and PPE, together with Asahi Kasei’s mPPE compounding technology and applications development capability “to facilitate further expansion in the growing Chinese market”, Asahi Kasei said.

Asahi Kasei and Bluestar created two joint venture firms to separately handle the manufacturing and sales of mPPE operations in China.

Bluestar is a subsidiary of China National Chemical Corp (ChemChina).

Additional reporting by Pearl Bantillo

By Nurluqman Suratman