DuPont Co. and China Petroleum & Chemical Corp., known as Sinopec, signed a joint venture agreement Sept. 20 to make ethylene vinyl acetate at Sinopec's Beijing Yanshan Co. subsidiary.
DuPont's Packaging and Industrial Polymers unit will supply the EVA resins technology and take a 45 percent stake in the venture, which is slated to start production in late 2008 with annual capacity of 132 million pounds, the company said.
Sinopec will take a 55 percent share in the project, which will be located at an existing Yanshan facility in Beijing. The size of the investment was not disclosed.
Wilmington, Del.-based DuPont said the plant will be its first EVA facility in China, and its first joint venture with Sinopec.
``[The joint venture] will help strengthen the position of DuPont in the world's fastest-growing EVA market and support its customers as they grow and expand to specialty products for high-value applications,'' DuPont said in a news release.
``The combination of the manufacturing expertise of Sinopec and the latest EVA technology from DuPont [Packaging and Industrial Polymers] will open up new business opportunities to serve different market segments in China.''
A DuPont spokeswoman at its Hong Kong office said DuPont is doing the joint venture to take advantage of Sinopec's skilled labor at the Yanshan site and speed startup time. While Sinopec has the larger stake, the spokeswoman said the firms work on an equal perspective. ``We don't see that as a big issue,'' she said.
DuPont said it will target markets such as packaging, adhesives, printing, wire and cable, footwear and apparel.
DuPont has 35 wholly owned or joint venture operations in China, and said in 2005 it wanted to double its total investments in the country, to $1.2 billion, by 2010.
Sinopec is publicly traded and is part of state-owned China Petrochemical Corp.