HONG KONG—Two affiliates of Chinese energy giant Sinopec are setting up a joint venture company to manufacture styrene thermoplastic elastomer new materials in Shanghai.
Shanghai Petrochemical and Baling Petrochemical, both subsidiaries of Sinopec, have signed an agreement to set up the 50/50 JV with a contribution of $124 million ($62 million each), Sinopec said in an Aug. 27 filing with the Hong Kong Stock Exchange.
Shanghai Jinshan Baling New Material Co. Ltd. will produce materials such as solution styrene butadiene rubber (SSBR), styrene butadiene styrene (SBS) and styrene block copolymers including SIS, SEBS, SEPS, the filing said.
The plant will manufacture the elastomer's feedstock, intermediate products and by-products.
The filing did not provide further details on the production capacity or plant's construction timeline.