Shanghai 3F New Materials Co. Ltd. and Solvay SA have formed a joint venture new fluoromonomer TFE and PTFE polymers production plant in Changshu, China.
The partners officially signed the agreement on July 10 for the new entity, 3F Solvay (Changshu) High Performance Polymers. Shanghai 3F will hold 90 percent of the share and operate the site, while Solvay will hold 10 percent of the share.
The JV will draw a total investment of 600 million yuan ($96.7 million), with 345 million yuan ($55.6 million) in registered capital, 3F said in a July 12 filing with the Shanghai Stock Exchange.
Negotiation started on Nov. 13, 2013, when the companies signed a memorandum of understanding of the JV, 3F said.
Construction of the facility has already completed, according to a release by Solvay. Production is scheduled to begin in the third quarter of this year.
The companies said the new facility will produce high performance polymers for both partners, enabling them to serve the fast growing markets in the region.
Shanghai 3F's Changshu plant will supply Solvay Specialty Polymers' new adjacent production unit with the strategic raw materials R142b and HFP.
Augusto Di Donfrancesco, president of Solvay Specialty Polymers, noted Shanghai 3F is the leading fluoromaterial manufacturer in China. “The alliance with Shanghai 3F will help us to better support our customers in this very fast growing region, as well as to stabilize our raw material supply.”
Jian Jin, general manager of Shanghai 3F, added, “The joint venture will further upgrade product quality of our fluorinated polymers to better serve the growing domestic and international mid- and high-end market for fluorinated plastics.”