Japan-based Idemitsu Kosan and Formosa Petrochemical (FPCC) have signed a joint venture (JV) agreement to establish a plant which will produce and sell hydrogenated hydrocarbon resin.
By using FPCC's plant in Taiwan, the JV will produce 40,000tpy of the resin, which is four times the capacity of Idemitsu's Tokuyama complex in Japan, according to Reuters.
The 50-50 JV is expected to come to fruition by the second half of fiscal 2012 and is scheduled to round up installation of equipment in 2014.
The agreement is the outcome of expected business growth for the hydrogenated hydrocarbon resin in third world countries, as well as its usage as an intermediary product in sanitary products.
Idemitsu Kosan has been producing hydrogenated hydrocarbon resin since 1994 at the Tokuyama plant, which manufactures 10,000mtpa of hydrogenated hydrocarbon resin.
Taiwan-based FPCC is a member of the Formosa Plastics Group (FPG) and manufactures, refines and sells petroleum and petroleum products.
Hydrogenated hydrocarbon resin is a transparent, colourless and odourless resin with thermostability and thermal resistance, and is trade named as I-MARV.