NEW YORK – Chemicals maker Huntsman Corp. unveiled Tuesday a joint venture with a subsidiary of Chinese oil giant Sinopec (IW 1000/322) to build and operate a chemical plant in China.
Huntsman will own 49% of the joint venture, Nanjing Jinling Huntsman New Materials, and Sinopec Jinling Company will hold 51%, the Texas-based company said in a statement.
The plant, to be built in Nanjing, will produce propylene oxide, a chemical used in the production of polyethers, the primary component of polyurethane foams.
It also will make methyl tertiary butyl ether, a compound used in gasoline to reduce carbon monoxide and ozone levels caused by auto emissions, Huntsman said.
"This partnership provides a tremendous opportunity for us to further our global expansion and create shareholder value. We are proud to partner with Sinopec, a global leader in energy, refining and chemicals," said Peter Huntsman, the firm's president and chief executive.
Huntsman shares were down 0.4% in late-session trade in New York in an overall lower market.
Copyright 2012 Agence France-Presse