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(Dow) -- The Dow Chemical Company
and Befar Group Co., Ltd. announced a memorandum of understanding (MOU) for a
new 50-50 joint venture to produce perchloroethylene (PCE), a key building block
material for non-ozone depleting refrigerants used in industrial, automotive,
consumer, commercial, building and construction, and other applications.
Under the MOU the two companies will explore development of a new,
world-scale, PCE manufacturing facility in Binzhou, Shandong Province, China.
The new facility would have an initial target capacity of 40 KTa, with the
ability to double production to 80 KT soon thereafter. Assuming the terms and
milestones of the MOU are met and subject to customary government approvals, Dow
and Binhua estimate production would begin in 2014.
According to Dow President of Chemicals & Energy, Carol Williams, the
proposed joint venture with Binhua is another critical milestone toward
fulfillment of the Company’s business strategy.
Global demand for PCE as a feedstock is increasing for
non-ozone-depleting fluorocarbon refrigerants in industrial, automotive and home
applications. In China, the market for PCE is growing rapidly, but to date,
local supply has been limited. The proposed Dow-Binhua joint venture is designed
to meet this significant market opportunity.
mrcplast.com
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