China: Engineering Plastics Joint Venture for mPPE business in China

Editor: Alexander Stark

Asahi Kasei has concluded a joint venture agreement with China National Bluestar, a subsidiary of China National Chemical Corp., 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).

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Asahi Kasei's Head Office located in Tokyo
Asahi Kasei's Head Office located in Tokyo
(Source: Asahi Kasei)

Tokyo/Japan— A final investment decision depends on antitrust clearance, procedures to establish the joint venture, and detailed evaluation of the economics of the joint business. 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.

The Japanese company is expecting growing demand for Xyron mPPE in China in environmental and energy applications including electric vehicle battery modules and solar panel components. Currently,intermediate materials for mPPE are produced in Singapore; global production capacity for Xyron amounts to 62,000 tons per year. The joint venture aims at expanding the business for modified polyphenylene in the strategically important Chinese market.

Bluestar is China’s only manufacturer of 2,6-xylenol and PPE.