(Yicai Global) May 7 -- China’s Zibo Qixiang Tengda Chemical Co. will team up with South Korean chemical heavyweight SKC Co. to invest in a joint venture in Zibo, the eastern Shandong province, to collaborate on propylene deep processing.
Qixiang Tengda and Cedar Holdings Group Ltd. penned a cooperation agreement with the South Korean chemical manufacturer, the company said in a statement. China’s eastern Shandong province has close geographical proximity to South Korea.
The Guangzhou-headquartered Cedar Holdings is the actual controller of Zibo Qixiang Tengda, shows publicly available information.
Qixiang Tengda will work with SKC to develop a global chemical business, the statement added without giving more details as to the nature of the partnership. Both sides will hold talks to finalize the details of their cooperation, it said.
The partnership will help expand Qixiang Tengda's chemical industry chain and boost its growth in the field of new chemical materials, the major deep processer of C4 products in China said.
Qixiang Tengda has been actively expanding overseas markets. Last month, it announced it would pay USD36 million for a 51 percent stake in Granite Capital SA, a Swiss-registered international petrochemical products trader, and purchase the remainder by 2023.
The subject company is a petrochemical commodity trader, with a high level of trade size and market share in the chemical subdivision market. Its butene-1 ranks first in the US market; pyrolytic gasoline is among the top two in the Asian market; and propylene among the top three in Europe and Asia, Qixiang Tengda said last month.
Editor: Mevlut Katik