Yantai, Shandong – Wanhua is setting up a joint venture subsidiary, Wanhua Chemical (Fujian) New Materials, near its diisocyanates park in Fujian province, according to a company announcement on March 25.
The subsidiary will be 80-20 owned by Wanhua and Ningbo Zhongtao Investment. Wanhua will pump CNY2.4bn ($369m) into the new business.
Wanhua plans to build propylene facilities employing the propane dehydrogenation (PDH) process, as well as downstream facilities close to its park, which will be managed by the new subsidiary.
The petrochemical materials can be used as feedstock for existing plants nearby and the two sites will share auxiliary facilities, the announcement said.
Ningbo Zhongtao currently holds a 20% stake in Wanhua Chemical (Fujian) Isocyanate, which was formerly known as Fujian Connell and was acquired by Wanhua in 2019.
The investment firm is based in Ningbo, Zhejiang and recorded CNY400m net assets as of the end of 2020.