Eastman, Sinopec YPC JV to build Chinese hydrocarbon plant
Eastman Chemical Company and Sinopec Yangzi Petrochemical Company (YPC) have formed a 50-50 joint venture (JV) to construct a new hydrogenated hydrocarbon resin plant in Nanjing, China.
The Nanjing facility will produce 50,000mt of Eastman's Adhesives and Plasticizers segment's Regalite hydrocarbon resins upon its completion.
Ron Lindsay, Eastman executive vice president, said Eastman is committed to growing its hydrogenated resins product line and the joint venture allows the company to serve the fast expanding market in Asia.
"This new facility reinforces our dedication to growing with our customers and to meeting demand in China and all of Asia," Lindsay added.
Michael Chung, Eastman international ventures senior vice president, said Eastman and Sinopec Yangzi Petrochemical Company have a strong existing resin production relationship.
"This venture is mutually beneficial and globalises our Regalite product line," Chung added.
The facility is expected be become operational by the end of 2014 and increase Eastman hydrogenated resins production by 50%
The companies have already formed a similar JV to produce Eastman Eastotac resins in Nanjing, China.
The JV will leverage the proximity of Sinopec YPC's integrated petroleum complex with Eastman's technology and market positions.
Regalite hydrogenated hydrocarbon resins have been in production since 1985 and are used in a variety of hot melt adhesives, polymer compounds and plastic modifications.