Oxea on Friday said it signed a memorandum of understanding with Chinese company Shenyang Zhangming Chemical in Zhangyizhan, Shenyang, to form a joint venture to produce carboxylic acids in China and market the products worldwide.
Production of other carboxylic acid derivatives is a possible option, according to the announcement. Carboxylic acids are chemical intermediates used for a variety of applications including production of lubricants and drying agents for coatings and paints.
Together with our new partner we will soon be able to deliver highly demanded products to our customers in Asia quicker than before, said Miguel Mantas, an executive board member who is also responsible for the Asian regions at Oberhausen, Germany-based Oxea.
With this new partnership we are continuing to pursue our strategy of expanding into growth markets while optimizing and enhancing our own value chain and product portfolio, said Martina Floel, spokeswoman for Oxeas executive board.
The companies agreed on non-disclosure of further details.
Established in 1984, Shenyang Zhangming Chemical produces a variety of chemicals, including 2-ethylhexanoic acid (2-EHA), a type of carboxylic acid. 2-EHA is a chemical intermediate for industrial applications, including lubricants. Shenyang also makes refined degreased naphthenic acid, which can be used for making oil additives and rust inhibitors.
Oxea produces a variety of carboxylic acids at its production facilities in Oberhausen and Marl, Germany.
Last December, Oxea announced plans to increase production capacity up to 50 percent for neopentylglycol and carboxylic acids, to meet growing demand. The company said it had significantly expanded its carboxylic acid capacity through process improvements.