MOSCOW (MRC) -- Asahi Kasei has
concluded a joint venture agreement with China National Bluestar (Group) Co.,
Ltd. (Bluestar), a subsidiary of China National Chemical Corp. (ChemChina), for
the integrated production and sale of Xyron modified polyphenylene ether (mPPE)
in China, including its intermediate materials 2,6-xylenol and polyphenylene
ether (PPE), said the company on its site.
A final investment decision is
conditional upon receipt of antitrust clearance, procedures to establish the
joint venture, and detailed evaluation of the economics of the joint
Under its "Cs for Tomorrow 2018" medium-term management
initiative, Asahi Kasei is advancing a strategic global expansion of its
engineering plastics business in the Material sector centered on automotive
applications. Xyron mPPE, in particular, is expected to enjoy strong demand
growth in China in environmental and energy applications including electric
vehicle battery modules and solar panel components. Currently, Asahi Kasei
manufactures intermediate materials for mPPE in Singapore, and its global
production capacity for Xyron is 62,000 tons per year.
The joint venture
with Bluestar will enable Asahi Kasei to expand its business for mPPE in the
strategically important Chinese market.
Bluestar, China’s only
manufacturer of 2,6-xylenol and PPE, sought to expand capacity to meet growing
demand and to enter the mPPE business. The joint venture to manufacture and sell
2,6-xylenol, PPE, and mPPE will leverage 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
Asahi Kasei Corporation is a global Japanese chemical company.
Its main products are chemicals and materials science.