Rhodia signs letter of intent with China National Blue Star Corporation for a strategic alliance in Silicone Activities
Rhodia's CEO, Jean-Pierre Clamadieu and President Ren Jian Xin of China National Blue Star Corporation have signed a letter of intent to form a strategic alliance for their respective Silicone activities.
The companies are forming the alliance to become a major supplier of Methylchlorosilane and Core Intermediates Silicone Products in the Asia-Pacific region. The project includes an investment in a new facility in Tianjin (China) using Rhodia technology and a joint commercial organization to sell products in the Asia-Pacific region manufactured by the alliance.
Blue Star will gain access to a best in class Methylchlorosilane technology that Rhodia has developed over the past 30 years. Rhodia will have a share of a very competitive upstream intermediates production unit located in Tianjin.
Following the completion of a feasibility study, the partners intend to launch, by early 2005, the construction of a 200 KT Methylchlorosilane facility in the municipality of Tianjin, with a start up capacity in the first quarter of 2007 of 100 KT.
This alliance is a key opportunity for the two companies to enhance their competitiveness and become a major player in the fast growing Asia-Pacific silicone market. Both companies intend to accelerate their respective downstream investments to take full advantage of the strong upstream integration.
This is the first step towards a global alliance in silicones between Rhodia and China National Blue Star Corporation.
Other news from the department business & finance
