Chengdu, China - Fibres group Invista is licensing Chinese company Sichuan Tianhua Fubang Chemical Co. Ltd to use its manufacturing technologies for the two intermediates BDO (1, 4-butanediol) and PTMEG (polytetramethylene ether glycol). Sichuan Tianhua Fubang plans to invest Yuan 2400 million ($337 million) to build plants for these products, in Luzhou City, Hejiang County in Sichuan Province.
The agreement covers the manufacturing processes, technologies and product formulations as well as expert engineering services for the two plants, which will have capacity of 60 kilotonnes per annum of BDO and 46 ktpa of PTMEG, said a 3 March announcement from Invista.
"Tianhua Fubang was our first BDO licensee, and has now become our first PTMEG licensee. We have found Tianhua Fubang to be a company of the highest integrity with a strong technical background, an excellent operational capability, and a commitment to their customers," said Richard Dobzelecki, Asia Pacific vice president for Intermediates at Invista, in the Invista statement. "As a global leader in intermediates with leading technology Invista is proud to be working with major local players such as Tianhua Fubang to help grow the high-performance elastomer industry."
Dobzelecki and Yang Dong, chairman of Sichuan Tianhua Fubang, were at a signing ceremony in Chengdu on 28 Jan 2008, along with senior representatives from both companies and local senior government leaders.
BDO is used to making polyester resins and polyurethanes, while PTMEG is used as a building block in high- performance polyurethanes, polyester copolymers and other polymers. Typical end uses for PTMEG include spandex polyurethanes fibres, thermoplastic polyurethane elastomers, and cast elastomers, for uses in clothing, automotive, heavy and light industrial uses.
Wichita, Kansas-headquartered Invista has also been growing in China in its own operations.
Last November the company announced it would spend $99.6 million in a 12.5 ktpa expansion of its 12 ktpa joint-venture spandex facility in Foshan, Guangdong Province and a 6 ktpa expansion at the company's LDZ joint-venture spandex site in Lianyungang, Jiangsu Province. These additions are part of the group's efforts to add a total of 50 ktpa of spandex capacity in the next three years.
Invista is also building a nylon 6,6 airbag fibre plant and has bought a nylon carpet fibre plant, both in Qingpu, Shanghai. The group also signed an agreement with Shanghai Chemical Industry Park (SCIP) Development Co. to build a state-of-the-art plant at SCIP, to meet the region's demand for nylon 6,6 intermediates and polymer.
"We are committed to our growth in China for the long term, and we hope to help advance the development of technology and related industries through our various growth initiatives in China," said Dobzelecki.
PIC: Invista's Foshan spendex plant, where it is doubling capacity.
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