Huntsman has unveiled a joint venture agreement with Sinopec Jinling Co., a subsidiary of Sinopec, to build and operate a world scale propylene oxide (PO) and methyl tertiary butyl ether (MTBE) facility in Nanjing, China. Expected to be completed by the end of 2014, the facility will utilize Huntsman's proprietary PO/MTBE manufacturing technology. Huntsman will own 49% of the joint venture, and Sinopec will own 51%. The facility will produce 550 mln lbs/year of PO and 1.6 billion lbs/year of MTBE at a capital cost of US$750 mln.
PO is an intermediate compound used to make polyurethane materials ranging from energy-efficient home insulation and building materials to comfort foams for automobiles and furniture. MTBE is a clean burning fuel additive that improves gasoline engine performance and reduces air pollution.
“This partnership provides a tremendous opportunity for us to further our global expansion and create shareholder value," said CEO Peter Huntsman. "We are proud to partner with Sinopec, a global leader in energy, refining and chemicals."