Momentive Specialty Chemicals Partners with UPC Technology to Establish New JV Company
Momentive Specialty Chemicals announced that is has entered into a MOU agreement with UPC Technology to establish a joint venture (JV) company. Under the terms of the agreement, the JV company will construct a manufacturing facility in China to manufacture specialty phenolic resins.
The JV entity will build the first manufacturing facility in Zhenjiang, China and will produce various types of specialty resole and novolac phenolic resins. These resins are traded under Durite, Bakelite and other brand names. They are used in a number of applications such as abrasives, refractories and friction. The plant construction is expected to begin in late 2011 and will be commissioned at the year end of 2012.
The partnership with UPC Technology will expand the capabilities of Momentive’s Specialty Phenolics unit and will help meet the increasing demand of Chinese customers. The demand for Momentive’s specialty phenolic resins is attributed to the rapid growth of consumer and automotive sectors in China.
The Zhenjiang JV project falls in line with Versatic acids plant construction that is ongoing in China and new Cardura monomers manufacturing plant in Onsan, Korea. Momentive has planned to continue its investment in China to enhance its presence and manufacturing capabilities in the region.
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