Asahi Kasei (Tokyo / Japan; www.asahi-kasei.co.jp) and China National Bluestar (Beijing / China; www.china-bluestar.com/lanxingen) have created two joint ventures for the production and sale of modified polyphenylene ether (mPPE) and its intermediates 2,6-xylenol and polyphenylene ether (PPE) in China. Both joint ventures, one for manufacturing and the other for sales, are located in Nantong, Jiangsu / China, with the aim to produce 30,000 t/y of PPE and 20,000 t/y of mPPE.

“Asahi Kasei and Bluestar will now begin studying the construction of manufacturing facilities for 2,6-xylenol, PPE and mPPE, and proceed with detailed evaluation of the economics of the joint business targeting a final investment decision by March 2018,” Asahi Kasei said in a statement.

The joint ventures, Asahi Kasei Bluestar (Nantong) Engineering Plastics Manufacturing and Asahi Kasei Bluestar (Nantong) Engineering Plastics Sales & Marketing, were established in August, following antitrust clearances. The former is owned 50.01% by Bluestar and 49.99% by Asahi Kasei and the latter is owned 50.07% by Asahi Kasei and 49.93% by Bluestar.

Asahi Kasei said the alliance will benefit from its mPPE compounding technology and applications development capability, together with Bluestar’s technology for 2,6-xylenol and PPE, to facilitate further expansion in the growing Chinese market.