Asahi Kasei, Bluestar Form MPPE Joint Ventures in China

Asahi Kasei Corporation has established two joint ventures with China National Bluestar (Group) Co Ltd (Bluestar), for an integrated production and sale of Xyron modified polyphenylene ether (mPPE) in China, including its intermediate materials 2,6-xylenol and polyphenylene ether (PPE).

Bluestar is a subsidiary of China National Chemical Corporation (ChemChina).

The two joint ventures (for manufacturing and sale) will leverage Bluestar’s technology for 2,6-Xylenol and PPE together with Asahi Kasei’s mPPE compounding technology and applications development capability to facilitate further expansion in the growing Chinese market.

Asahi Kasei and Bluestar will now begin studying the construction of manufacturing facilities for 2,6-xylenol, PPE, and mPPE, and proceed with detailed evaluation of the economics of the joint business targeting a final investment decision by March 2018.

Outline of manufacturing joint venture

Company name: Asahi Kasei Bluestar (Nantong) Engineering Plastics Manufacturing Co., Ltd. Location: Nantong, Jiangsu, China Shareholding: Bluestar 50.01 percent, Asahi Kasei 49.99 percent Operation: Manufacture of 2,6-xylenol and PPE (30,000 tons/year: Polymer) and mPPE (20,000 tons/year)

Outline of sales joint venture

Company name: Asahi Kasei Bluestar (Nantong) Engineering Plastics Sales & Marketing Co., Ltd. Location: Nantong, Jiangsu, China Shareholding: Asahi Kasei 50.07 percent, Bluestar 49.93 percent Operation: Sale of 2,6-xylenol, PPE, and mPPE (subsidiaries to be established in Shanghai, Shenzhen, and Hong Kong)

The manufacture of Xyron mPPE begins with Phenol and methanol as raw materials. Phenol and methanol are used to synthesize 2,6-xylenol, which is then polymerized into PPE. The PPE is compounded with other polymers and various combinations of glass fibre, flame retardant, and other additives to form mPPE. Featuring superior heat resistance, flame retardance, dimensional stability, and mechanical properties, mPPE is used in fields ranging from office equipment, automotive components (relay blocks, electric vehicle battery modules, etc.), junction boxes for solar panels, industrial components, and electrical and electronic parts (connectors, etc.)