Momentive Specialty Chemicals Inc., a leading global producer of specialty chemicals and materials, and UPC Technology Corporation, a leading China-based producer of specialty chemicals, announced today they have signed a memorandum of understanding to create a joint venture company that will build manufacturing capability in China to produce specialty phenolic resins.
The joint venture company plans to build its first manufacturing plant in Zhenjiang, Jiangsu, China, adjacent to an existing UPC Technology manufacturing complex. The new plant will produce a full range of specialty novolac and resole phenolic resins used in a diverse range of applications including refractories, friction and abrasives. These products are sold under industry-leading trade names including BakeliteTM resins and Durite resinsTM. Construction is expected to commence late this year after engineering design work and permitting is completed, with the plant anticipated to be commissioned toward the end of 2012. Consummation of the joint venture formation is subject to final approval by each company and regulatory review, if applicable.
"We are pleased to partner with UPC Technology, a recognized and respected industry leader, in this important new initiative," said Marcello Boldrini, Vice President & General Manager for Momentive's Specialty Phenolics business. "We have a strong commitment to our customers in the region, and this joint venture demonstrates the beginning of a long-term relationship with UPC Technology to better serve them. This initial project will expand our capabilities in the region and enable us to meet growing demand from our customers in China with locally manufactured solutions for their application needs."
Momentive's Joe Chan, Managing Director-Asia, said: "The rapid growth of the auto and consumer markets in China are driving strong demand for our specialty phenolic resins. China is now one of the largest markets for phenolics resins in the world, and we anticipate that growth will continue.
This project in Zhenjiang will follow on the heels of Momentive's new CarduraTM monomers plant recently commissioned in Onsan, Korea, and our VersaticTM acids plant now under construction in Shanxi Province, China, to further enhance our regional presence. We plan to continue to invest in China to expand our manufacturing capabilities to better serve our customers."