Yantai, Shandong – Wanhua and the state-owned Fujian Petrochemical Group are setting up an 80-20 joint venture diisocyanate business.
The joint venture, Wanhua Chemical (Fujian) was agreed on 2 March, and has has CNY3bn ($430m) initial registered capital. Wanhua is contributing CNY 2.4bn, and the balance comes from Fujian Petrochemical, according to a Wanhua announcement on 3 March.
Wanhua Chemical (Fujian) will take over a 64% stake in Fujian Connell, which Wanhua bought in 2019. The jv will advance the planned 400kT/year MDI plant in Fuzhou, Fujian province.
The joint venture will also include TDI and related facilities that operate as part of Southeast Electrochemistry. This is a Fuzhou-based subsidiary of Fujian Petrochemical Group.
Wanhua will increase Southeast Electrochemistry’s TDI capacity from 100kT/year to 250kT/year. Southeast Electrochemistry has been planning to do this since 2018. It will also build an additional 400 kT/year capacity for PVC.
Wanhua also agreed to buy a 49% stake in Southeast Electrochemistry. This will give Wanhua the rest of Southeast Electrochemistry's assets. A price has yet to be decided.
Last year, the Fujian firm reported CNY 336m net loss on CNY 1.5bn revenue. Its net assets as of 2019 year-end stood at CNY 2.9bn.