Huntsman on Tuesday unveiled a joint venture agreement with
Sinopec Jinling Co., a subsidiary of Sinopec, to build and
operate a world scale propylene oxide (PO) and methyl
tertiary butyl ether (MTBE) facility in Nanjing, China.
The facility is expected to be completed by the end of 2014. It
will utilize Huntsman's proprietary PO/MTBE manufacturing
PO is an intermediate compound used to make 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, and Sinopec will
own 51%. The facility will produce 550 mm lbs/year of PO and
1.6 billion lbs/year of MTBE at a capital cost of approximately
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," said CEO Peter Huntsman. "We are proud to partner with
Sinopec, a global leader in energy, refining and chemicals."
Huntsman's polyurethanes division has world-scale production
facilities in the US, the
Netherlands and China, including a PO/MTBE plant in Port
Neches, Texas. The company describes itself as a global
leader in PO technology.