According to China Fluoride Materials Monthly Report 1312 issued by CCM,on Nov. 15, 2013, Shanghai 3F New Materials Co., Ltd. (Shanghai 3F) released an announcement about its cooperation with Solvay Group (Solvay). According to the announcement, Shanghai 3F has signed a memorandum of understanding (MOU) with Solvay Specialty Polymers Italy Spa (Solvay SP) on Nov. 13, 2013, including the cooperation of long-term supply of chemical monomers to Solvay SP and setting up a joint venture with Solvay.
The main clause s of the MOU is as follows. Firstly, Shanghai 3F or its subsidiaries shall supply chemical monomers, such as chlorodifluoroethane (R142b), hexafluoropropylene (HFP) and chlorotrifluoroethene (CTFE) to Solvay SP in a long term. Secondly, Shanghai 3F and Solvay will set up a joint venture to produce tetrafluoroethylene (TFE) and polytetrafluoroethylene (PTFE) in Changshu City, Jiangsu Province, whose registered capital will reach USD53.70 million. Thirdly, Shanghai 3F will hold 80% stake in the joint venture, while Solvay will hold the remaining 20% stake.
Meanwhile, Shanghai 3F expressed that the cooperation with Solvay would help the company obtain complementary advantages of resource and production technology. On one hand, it could promote the existing products' upgrading, increase the profitability and R&D capacity with the aid of advanced foreign technology through the cooperation. On the other hand, many domestic securities companies also forecast that Shanghai 3F's fluoropolymer business will be improved during its medium and long term development, since it may obtain the production capability of high-end PTFE through the cooperation, and domestic market of high-end PTFE will be quite profitable and promising in the future.
By the way, Solvay SP is a subsidiary of Solvay, located in Milano, Italy. The registered capital of this company reaches USD511.65 million. Besides, this company is mainly engaging in the R&D, production and marketing of chemical products and high performance specialty polymers.
Apart from Solvay, Shanghai 3F also cooperated with two other international leading chemical enterprises in fluoropolymer business in the past, namely, DuPont Company (DuPont) and Arkema Group (Arkema). The cooperation with DuPont mainly involved joint venture and production, while the cooperation with Arkema was about equity transfer.
In 2007, in order to supply TFE to DuPont (Changshu) Fluoro Technology Co., Ltd. (DuPont Changshu) for PTFE production, Shanghai 3F set up a TFE plant in Changshu City. Moreover, in Sept. 2011, Shanghai 3F and DuPont China Holding Co., Ltd. (DuPont China) signed a letter of intent about setting up a joint venture to produce PTFE and fluorinated ethylene propylene (FEP) in Changshu City.
In Dec. 2012, Shanghai 3F decided to transfer 5% equity of its subsidiary—Changshu 3F Fluorine Industry Co., Ltd. (Changshu 3F) to Arkema Asie Sas, a subsidiary of Arkema. Meanwhile, Arkema Asie Sas paid USD4.48 million for the equity. The main purpose of the transfer was to obtain international leading management experience and production technology from Arkema to improve Changshu 3F's product structure.
Table of Contents of China Fluoride Materials Monthly Report 1312:
1. Market review of fluorite in the first three quarters of 2013
2. Draft regulation on rational exploitation and utilization of fluorite issued
3. FECO releases an announcement about HCFC production quotas of 2014
4. FECO releases an announcement about HCFC usage quotas of 2014
5. HFO-1234yf enjoys a bright future
6. Domestic market situation of AlF3 was optimistic since Q3 2013
7. Xingfa Group's comprehensive utilization project goes into trial production
8. Quzhou City's fluorine & silicon industry enjoying a bright future
9. Shanghai 3F to cooperate with Solvay in fluoropolymer business
10. Do-Fluoride's LiPF6 business progressing smoothly
11. Jiangsu Guotai terminates its LiPF6 project
12. Import and export analysis of fluoride chemicals in China in Oct. 2013
13. Domestic ex-works prices of most fluoride materials in Nov. 2013
14. Thaihot Group's organic fluoride project to put into production in Q4 2013
15. Yonghe Fluorochemical's fluorine chemical project developing well
16. Dongyangguang Fluorine's new refrigerant project goes into production
17. Juhua Kailan's new LiPF6 project starts constructing