Songwon Industrial Co. Ltd. and Tangshan Baifu Chemical Ltd. plan to form a joint venture to manufacture and sell Thioester antioxidants. The two companies have signed a Memorandum of Understanding whereby Songwon shall take an initial stake of 30% in Tangshan Baifu Chemical Ltd. with the option to extend its share to up to 50% at a later date. The JV will be operational by 1 January, 2011 and will initially focus on the manufacture of Songnox DLTDP and Songox DSTDP thioesters for the Chinese and global market. With Songwon’s global reach and Tangshan Baifu’s expertise in manufacturing these products customers around the globe will benefit from an integrated supply chain and increased supply security for these products.
Jongho Park, Chairman and President of Songwon Group, when signing the MoU said: “This JV marks the first step towards building an active manufacturing presence in China and our long term commitment to backwards integrate into the production of Polymer Additives which we don’t produce ourselves in our factories in Ulsan, South Korea. Committed to offer a full range of Polymer Additives we are proud to partner with such a reputable manufacturer as Tangshan Baifu enabling customers around the world to have easier access and secured supply for this important family of products.”
Weiqi Zhang, President and CEO of Tangshan Baifu Chemical Ltd. stated; “Our manufacturing foothold and reputation in China for service and quality will be complemented by technology and global reach in additives from Songwon. We will build on each other’s strengths to ensure that we will become a leading supplier of Thioester antioxidants to the global polymer market.”