Huntsman and Sinopec form joint venture in Nanjing, China

Huntsman Corp. announced that it has entered into a joint venture agreement with Sinopec Jinling Company, a subsidiary of Sinopec. The joint venture, Nanjing Jinling Huntsman New Materials Co., Ltd. will build and operate a world scale Propylene Oxide (PO) and Methyl Tertiary Butyl Ether (MTBE) facility in Nanjing, China.
The facility is to be completed by the end of 2014. It 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% of the joint venture, while Sinopec will have the controlling interest at 51%. The facility will produce 550 million pounds of PO and 1.6 billion pounds of MTBE, at a capital cost of approximately US$750 million.
Other details of the joint venture were not disclosed.