Korean polymer additives manufacturer Songwon Industrial (Ulsan; www.songwonind.com) and Tangshan Baifu Chemical (Tangshan / China; www.tsbaifu.com) are to establish a joint venture to manufacture and sell thioester antioxidants. Songwon Baifu Chemical will become operational in the first quarter of 2011 and will have an annual capacity of 6,000 t of thioester antioxidants.

Songwon will initially own a 30% share in the new company with the option to expand its shareholding to 50%. The jv will sell thioester products directly to the Chinese market and will use Songwon’s existing global network for all sales outside China. Songwon chairman and president Jongho Park said: “We believe that this is a very important day for the polymer stabiliser business and for our customers. The synergies between the partners are far reaching. Tangshan Baifu brings expertise in producing thioesters with their world-scale fully backward integrated production capabilities. Songwon complements this with global sales, technical support, logistic and customer service network…With this venture we have created a major global player in the thioester market that will have the Songwon trademark approach of high quality products, competitiveness, security and reliability of supply, accompanied by strong technical service and application support.”

Weiqi Zhang, president and CEO of Tangshan Baifu Chemical, said: “We have built a strong manufacturing foothold and reputation in China for service and quality which we will now be able to deliver globally. In addition, the Thioester business will benefit from Songwon’s extensive knowledge and innovation in additives which is complemented by their technology and significant market reach. We will build on each other’s strengths to ensure that Songwon Baifu Chemical will become a leading supplier and partner of choice for thioester antioxidants to the global polymer market.”

In addition, Songwon said it plans to enter into a polymer stabiliser joint venture with India's HPL Additives (New Delhi; www.highpolymerlabs.com). The new company is to be called Songwon HPL Additives. According to the declaration of intent, HPL will introduce all its business units and assets linked to plastics stabilisers to the new company. Songwon will hold a 60% stake in the jv, HPL the remaining 40%. The new unit is scheduled to begin operations in Q2 2011.