(Refiles to fix spelling of "listed" in first paragraph)
PARIS Jan 23 French chemicals group Arkema
on Thursday said it had set up a joint-venture with
Jurong Chemical, China's biggest manufacturer of acrylic acid
and a unit of Singapore-listed firm Sunvic, with an
initial investment of $240 million.
Arkema said on Thursday the joint-venture, in which it would
have a majority stake, would enable it to boost its coating
solutions business in Asia and expand in fast-growing markets
for products such as super-absorbents, paints and adhesives.
The joint venture will be based at Jurong's Taixing site,
west of Shanghai, and will have an initial capacity of 160,000
tonnes a year.
Arkema has the option to raise capacity to 320,000 tonnes a
year for a further $235 million investment and acquire the
remaining one-third of the plant's acrylic acid production at a
cost of $165 million in the next five years.
"This partnership is a unique opportunity for Arkema to
access a major acrylic monomer production site in Asia this
year, and what's more in China, a country that alone represents
a quarter of the global acrylics market, with high growth," Marc
Schuller, Arkema Executive Vice President said in a statement.
(Reporting by Astrid Wendlandt; Editing by Miral Fahmy)