Huntsman Forms Joint Venture to Build Chemical Plants in China

Huntsman Corp. (NYSE: HUN) is partnering with Sinopec Jinling Co., a subsidiary of the Chinese petrochemical company Sinopec, on a joint venture to build a $750 million chemical plant in Nanjing, China.

Huntsman, a chemicals manufacturer with its main operations based in The Woodlands, said it will use its manufacturing technology to start up the plant, which will produce propylene oxide and methyl tertiary butyl ether.

In the joint venture, called Nanjing Jinling Huntsman New Materials Company Ltd., Huntsman owns 49 percent and Sinopec owns 51 percent of the company’s assets.

"This partnership provides a tremendous opportunity for us to further our global expansion and create shareholder value," Peter Huntsman, Huntsman's CEO and president, said in a statement.

The venture plans to complete the new chemical facility by 2014, and the facility is expected to produce 550 million pounds of propylene oxide and 1.6 billion pounds of methyl tertiary butyl ether.

Propylene oxide is used to make materials such as energy-efficient home insulation and comfort foams, and methyl tertiary butyl ether is a clean-burning fuel additive that improves gasoline engine performance and reduces air pollution.