Mitsubishi Chemical Corp. and China's Sinopec held an opening ceremony Aug. 28 to kick off their planned joint venture, a polycarbonate and bisphenol A manufacturing facility in Beijing.
The companies previously said they were targeting a spring 2010 completion for the 2 billion yuan ($300 million) investment, but a Mitsubishi spokesman said startup of the 132 million-pound polycarbonate plant and 331 million-pound BPA facilities could slip beyond 2010.
China's polycarbonate supplies are heavily dependent on imports, and the two firms said they want to boost supply and delivery time in the country.
The new facility is owned 50 percent by Beijing-based Sino-pec (China Petroleum and Chemical Corp.) and 50 percent by Mitsubishi Chemical Corp. and its Mitsubishi Engineering Plastics unit.
The plant will be located on the grounds of Sinopec's Beijing Yanshan Co. in Beijing.
The companies had projected demand growth of 10 percent a year for PC in China, but the economic crisis has slowed that to between 7-8 percent, according to a Mitsubishi spokesman.
The new venture will supply entirely in China, Mitsubishi said.
Sinopec will supply raw materials for BPA, including acetones and phenol. Mitsubishi will supply the technology license to make BPA and PC, along with the polycarbonate raw material di-phenyl carbonate.
Copyright 2009 Crain Communications Inc. All Rights Reserved.