Jan. 22, 2007 (China Knowledge) – Perstorp, a Swedish chemicals company, is forming a joint venture with Fufeng Chemical company to acquire a Trimethylolpropane (TMP) production plant in the Qilu Chemical Industrial Park in Zibo City, Shandong province.

The joint venture, called Zibo Fufeng Tongsheng Chemical Co., will be 51% owned by Perstorp while the remaining shares will be owned by Fufeng. The plant will have a production capacity of 15,000 tons of TMP, which is chiefly used in industrial coatings and polyurethanes in China.

Perstorp’s senior vice president Lars Eric Johansson said in a press release that while Perstorp’s has served the Chinese market from Europe for 20 years, establishing presence is needed as demand for TMP is increasing in the Mainland.

The joint venture is pending approval from local authorities.