May 12 2005
Following on their October 15, 2004 letter of intent, Rhodia and China National Blue Star Corporation today announced the signing of a Memorandum of Understanding marking another step forward in the formation of a strategic alliance of their respective silicones activities.
The two companies intend to build a core intermediates (methylchlorosilane) production unit in Tianjin, China, based on Rhodia's technology. The unit will have an initial capacity of 200 kt and is planned to start up in the fourth quarter of 2007. The two companies also plan to create a co-enterprise to commercialize products manufactured through the alliance in the fast growing Asia-Pacific market.
At the same time, Rhodia and China National Blue Star Corporation are studying the feasibility of forming a global strategic alliance combining their upstream and downstream silicones activities. This joint venture would reinforce both companies' competitiveness and innovation potential and strengthen their ability to support their customers on a worldwide basis.
The competitive access to Blue Star's silicium metal, combined with strong integration in core intermediates in both Europe (France) and Asia (China) and Rhodia Silicones' full range of specialties, would position this new entity as a key player with strong growth potential, particularly in Asia-Pacific.
The companies intend to complete the global joint venture of their silicones businesses by mid-2006.
http://www.rhodia.com/