Kraton Performance Polymers, a global manufacturer of engineered polymers, and Formosa Petrochemical Corporation (FPCC), a producer of plastics and petrochemicals, have entered into a joint venture (JV) framework deal to build and operate a hydrogenated styrenic block copolymer (HSBC) manufacturing facility in Mailiao, Taiwan. The agreement will govern all operational, technical, commercial and management aspects of the JV firm.
Kraton has been assessing various alternatives for extra capacity to meet the growing demand for its HSBC grades. The additional capacity will use Kraton's innovative technology to produce HSBCs. The joint venture project will utilize FPCC's expertise in project execution and operational resources.
Once completed, the plant will provide a significant platform to introduce a new range of polymers for Kraton's Asian and global clients. The plant’s cost is estimated to be between $165-$200 million range. The operation will commence in the latter half of 2013.
The President and CEO of Kraton, Kevin M. Fogarty stated that this JV will help to continue its relationship with FPCC and support capacity expansions in the future. As a part of the agreement, FPCC will deliver feedstock inputs such as butadiene, utilities and site services to the JV unit.
The HSBC plant will be designed using the proprietary polymerization technology of Kraton. High quality grades of HSBC polymer will be produced by the facility. Kraton and FCCC JV entity will operate the plant, while Kraton will be responsible for global marketing of HSBC products.