INVISTA and Tianhua Fubang sign technology licensing agreement for an RMB 2.4-billion investment to produce BDO and PTMEG
Global intermediates leader signs its first PTMEG licensing project in China
Chengdu, CHINA (March 3, 2008) - INVISTA, a world leader in fibers, intermediates and polymers, has signed a technology licensing agreement with Sichuan Tianhua Fubang Chemical Co., Ltd. to license its BDO and PTMEG manufacturing technologies to the Chinese company. Sichuan Tianhua Fubang intends to invest RMB2.4 billion in building manufacturing plants to produce these two products in Hejiang County of Luzhou City, Sichuan Province.
Mr. Richard Dobzelecki, Asia Pacific vice president for Intermediates at INVISTA, and Mr. Yang Dong, chairman of Sichuan Tianhua Fubang Chemical Co., Ltd, were present at the signing ceremony which was held in Chengdu on January 28, 2008, along with senior representatives from both companies and senior government leaders from Sichuan Province, Luzhou City and Hejiang County.
"We are excited about this project. Tianhua Fubang was our first BDO licensee, and has now become our first PTMEG licensee. We have found Tianhua Fubang to be a company of the highest integrity with a strong technical background, an excellent operational capability, and a commitment to their customers." said Mr. Dobzelecki. "As a global leader in intermediates with leading technology INVISTA is proud to be working with major local players such as Tianhua Fubang to help grow the high performance elastomer industry."
The licensing agreement covers the manufacturing processes, required technologies, product formulations as well as expert engineering services for the two plants with annual capacity of 60,000 tons of BDO and 46,000 tons of PTMEG respectively.
Both BDO (1,4 Butanediol) and PTMEG (Polytetramethylene Ether Glycol) are chemical intermediates. BDO is used in making polyester resins and polyurethanes, while PTMEG is a polyether glycol and is used as a building block in high performance polyurethanes, polyesters co-polymers and other polymers. Typical end uses for PTMEG include spandex fibers, thermal plastic elastomers, and cast elastomers for apparel, automotive, heavy and light industrial uses.
INVISTA has been licensing its leading technologies in chemical intermediates and polymers in China since its first polyester license in 1990. The total investment of INVISTA's Chinese licensees has now exceeded RMB30 billion.
In addition to licensing its technologies, INVISTA has also been active in growing in the country through investments and acquisitions.
Last November the company signed a Land Reservation Agreement with the Shanghai Chemical Industry Park Development Company for the construction of a state-of-the-art production plant at the Shanghai Chemical Industrial Park to meet the region's demand for nylon 6,6 intermediates and polymer.
In the same month it also announced expansion of its joint-venture spandex facility in Foshan, Guangdong Province and expansion at the company's LDZ joint-venture spandex site in Lianyungang of Jiangsu Province. In addition, the company is building a nylon 6,6 airbag fiber plant and acquired a nylon carpet fiber plant, both located in Qingpu, Shanghai.
"We are committed to our growth in China for the long term, and we hope to help advance the development of technology and related industries through our various growth initiatives in China," said Mr. Dobzelecki.
In China INVISTA has sales and administrative offices in Beijing, Shanghai, Guangzhou and Hong Kong SAR, as well as wholly owned and joint-venture manufacturing plants in Shanghai, Lianyungang and Foshan.