Kraton Performance Polymers Inc. recently announced the execution of a framework agreement with Formosa Petrochemical Corp. (FPCC) to form a 50:50 joint venture to construct and operate a 30-kiloton hydrogenated styrenic block copolymer (HSBC) plant in Mailiao, Taiwan. The agreement establishes a framework between Kraton and FPCC governing all commercial, operational, technical and management aspects of the planned joint venture company. Kraton and FPCC expect to finalize documentation by December 31 and currently plan to have the plant operational in the second half of 2013. The cost of the plant is currently expected to be in the range of $165-200 million.
“In response to growth in global demand for our differentiated grades of HSBCs, we have been evaluating alternatives for additional capacity that would employ Kraton’s latest state-of-the-art technology for producing HSBCs,” said Kevin M. Fogarty, president and CEO of Kraton. “This announcement is the result of a comprehensive one-year site selection process involving significant Kraton resources, during which we considered several possible investment alternatives.
“We are extremely pleased and honored to now announce this planned formation of a joint venture with FPCC, a global leader in the production of petrochemicals and plastics. FPCC’s significant project execution expertise and operational resources will help ensure timely completion of the construction phase of the project. We view this joint venture project as the first step in a long-term relationship with FPCC, which may provide for future capacity expansions.”
For more information, visit www.fpcc.com.tw/English/default.htm