Huntsman forms joint venture with Sinopec to build chemical facility in China
THE WOODLANDS, Texas — Huntsman Corp., a chemical manufacturer based in The Woodlands, Texas, has formed a joint venture with Sinopec Jinling Co., a subsidiary of Chinese oil & gas company Sinopec, to build and operate a propylene oxide (PO) and methyl tertiary butyl ether (MTBE) facility in Nanjing, China.
The facility, which is expected to be completed by the end of 2014, will utilize Huntsman''s proprietary PO/MTBE manufacturing technology.
PO is an intermediate compound used to make high value polyurethane materials ranging from energy-efficient home insulation and building materials to comfort foams for automobiles and furniture. MTBE is a clean burning fuel additive that improves gasoline engine performance and reduces air pollution.
Huntsman will own 49 percent of the joint venture, and Sinopec will own 51 percent. The facility will produce 550 mm lbs of PO and 1.6 billion lbs of MTBE at a capital cost of approximately $750 million. Other details of the joint venture were not disclosed.
"This partnership provides a tremendous opportunity for us to further our global expansion and create shareholder value. We are proud to partner with Sinopec, a global leader in energy, refining and chemicals,” said Huntsman President and CEO Peter R. Huntsman.