Mitsui Chemicals and Sinopec to Form Chinese Joint Venture

Mitsui Chemicals and China Petroleum & Chemical Co (also known as Sinpoec) have reached a basic agreement where they will jointly manufacture a raw materials used in the production of polycarbonate. An official announcement on the proposed joint venture is expected at the end of the week.

If the joint venture goes ahead, the two companies will establish a 50:50 joint venture that will involve production and marketing. They will also build a plant in Shanghai that will have a capacity of 120,000 tons per year of Bisphenol A, with production expected to be available in the summer of 2006. They intend to sell it on the domestic Chinese market.

The plant will source raw materials for the production of Bisphenol A from Sinopec. The joint venture will help the two companies to satisfy China’s demand for Bisphenol A which is rapidly increasing.

Bisphenol A is used in the production of polycarbonate, a high performance durable polymer used in automotive applications, DVD’s, electronics and office equipment.

For more information on polycarbonate, click here.

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