US chemicals and polymers producer Celanese (Dallas, Texas; www.celanese.com) has signed a memorandum of understanding to form a joint venture with China’s Sichuan Yi Bin Push Group (Yibin, Sichuan; http://pushi.com.cn). The venture would focus on producing cellulose acetate-based speciality products, including plastics and films. Push Group is located in Yibin and is a wholly-owned subsidiary of Sichuan Wuliangye Group. Under the joint venture agreement, Push Group would contribute existing cellulose acetate-related assets and Celanese would provide technology as well as operational know-how and experience.

Although the definitive terms of several ancillary agreements are still being discussed, Celanese said it had concluded the joint venture negotiations and both parties have agreed to extend the period of exclusivity related to the project.

Scott Sutton, president of Celanese’s Materials Solutions business, said the venture adds a focus on speciality cellulose plastics to its existing capabilities, and allows it to participate in developing the next generation of products manufactured with cellulose acetate flake.

Execution of the joint venture agreement and remaining documents is expected to occur before the end of March 2016. The transaction remains subject to the usual closing conditions as well as regulatory approvals and third-party consents.