Koppers forms JV to build Chinese tar distillation plant
Koppers Holdings' board of directors has approved the formation of a majority-owned joint venture (JV) company by its wholly-owned subsidiary Koppers International to design and construct a tar distillation plant in partnership with the Yizhou Group in Pizhou, Jiangsu, China.
The distillation facility will be part of an integrated carbon production complex that comprises of three plants, which include a 300,000mt coal tar distillation plant and two downstream plants which generate needle coke and carbon black.
According to Koppers, the downstream facilities will be owned by subsidiaries of Nippon Steel Chemical. The majority of production from the coal tar distillation plant will be dedicated to the production of needle coke and carbon black.
Plant construction is expected to start in late 2012 and be completed in the first half of 2014.
The facility is also expected to generate $150-200m revenue once it becomes operational.
Walter Turner, Koppers president and CEO, said Koppers is excited to partner with Nippon Steel Chemical, the Yizhou Group and Pizhou City Government for the growth project.
''This project is unique in many ways including the fact that the end market is driven by needle coke demand, a high value product used in the production of electrodes for the electric arc steel making industry,'' Turner added.
''The joint cooperation among these entities brings together the many strengths of each partner to further expand our presence in the carbon chemicals markets in China."