MOSCOW (MRC) -- South Korea-based chemical producer SK Chemicals will launch a joint venture (JV) with Japan's Teijin Chemicals for developing, producing and marketing a super-engineering plastic, polyphenylene sulfide (PPS), said Chemicals-technology.
The proposed JV will set up PPS resin production plants to manufacture 12,000 tons per year (tpy) of PPS by 2015.
The companies are also considering expanding the manufacturing capacity to 20,000tpy during the second phase of the project.
The JV is likely to help SK Chemicals to expand its PPS projects with the synergy created from the companies' world-class R&D, production expertise and global marketing networks. SK Chemicals also expects to generate a revenue of KRW350bn ($230m) in 2024.
The company will hold 66% shares of the proposed JV's equity while Teijin Chemicals will own 34%.
SK Chemicals Green Chemicals Business president Lee Moon Suk said once the PPS facilities of the JV are completed, SK Chemicals will become the first and only Korean company to produce PPS.
"The successful operation of the partnership with Teijin Chemicals will, therefore, help SK Chemicals emerge as a new leader of the international super-engineering plastic market," Suk added.
The JV, which will officially commence from around the end of July, is planning to gain at least 20% of the international market share by 2019.
The super-engineering plastic industry worldwide produces a total of 280,000 tpy of products, with the trade of PPS compounds accounting for 94,000 tons (as of the end of 2012), according to SK Chemicals.
As MRC wrote earlier, Indonesian state energy company PT Pertamina signed a memorandum of understanding with SK Global Chemical to construct a petrochemical facility in the Southeast Asian country.
SK Global Chemical Co., Ltd. develops, produces, and supplies olefins, such as ethylene, propylene, butadiene, MBTE, and butene-1; aromatics. The company also provides polymers, including linear lower, medium, and high density polyethylene products; and home, impact, and random polypropylene products. It serves customers in South Korea and internationally. The company was founded in 1962 and is based in Seoul, South Korea with a sales office in Shanghai, China. SK Global Chemical Co., Ltd. operates as a subsidiary of SK Innovation Co., Ltd.
MRC