15 February 2017
ABOUT CHINA NATIONAL BLUE STAR
DETAILS
has concluded a joint venture agreement with
China National Bluestar (Group) Co., Ltd. (Bluestar),
a subsidiary of China National Chemical Corp.
(ChemChina),
for the integrated production and sale of
Xyron™ modified polyphenylene ether (mPPE)
in China, including its intermediate materials
2,6-xylenol and polyphenylene ether (PPE).
A final investment decision
is conditional upon receipt of antitrust clearance,
procedures to establish the joint venture,
and detailed evaluation
of the economics of the joint business.
Under its “Cs for Tomorrow 2018”
medium-term management initiative,
Asahi Kasei is advancing a strategic global expansion
of its engineering plastics business
in the Material sector centered
on automotive applications.
Xyron™ mPPE, in particular, is expected
to enjoy strong demand growth in China
in environmental and energy applications including
electric vehicle battery modules and
solar panel components.
Currently, Asahi Kasei manufactures
intermediate materials for mPPE in Singapore,
and its global production capacity
for Xyron™ is 62,000 tons per year.
The joint venture with Bluestar will enable
Asahi Kasei to expand its business
for mPPE in the strategically important Chinese market.
China’s only manufacturer of 2,6-xylenol and PPE,
sought to expand capacity to meet growing demand
and to enter the mPPE business.
The joint venture to manufacture and sell
2,6-xylenol, PPE, and mPPE
will leverage Bluestar’s technology
for 2,6-xylenol and PPE together with
Asahi Kasei’s mPPE compounding technology
and applications development capability
to facilitate further expansion
in the growing Chinese market.
Overview of the planned joint venture
- Establishment August 2017 (planned)
- Final investment decision March 2018 (planned)
- Capacity for PPE and 2,6-xylenol 30,000 tons/year (polymer)
- Capacity for mPPE 20,000 tons/year
The manufacture of Xyron™ mPPE
begins with phenol and methanol as raw materials.
Phenol and methanol are used
to synthesize 2,6-xylenol,
which is then polymerized into PPE.
The PPE is compounded with other polymers
and various combinations of glass fiber, flame retardant,
and other additives to form mPPE.
Featuring superior heat resistance, flame retardance,
dimensional stability, and mechanical properties,
mPPE is used in fields ranging
from office equipment, automotive components
(relay blocks, electric vehicle battery modules, etc.),
junction boxes for solar panels,
industrial components, and
electrical and electronic parts (connectors, etc.)
Asahi Kasei produces
* 2,6-xylenol at its wholly owned subsidiary
Asahi Kasei Plastics Singapore Pte. Ltd. (APS)
and
* PPE at Polyxylenol Singapore Pte. Ltd.
(70% owned by APS).
WWW.CHEMWINFO.COM BY KHUN PHICHAI
