By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
The 50:50 joint venture named Kolon BASF innoPOM, Inc. will have an annual capacity of 70,000 metric tons.
Kolon Plastics and BASF have signed an agreement to establish a joint venture (JV) in Korea to manufacture polyoxymethylene (POM), an engineering plastic used in industrial, transportation, construction and consumer markets.
The 50:50 joint venture named Kolon BASF innoPOM, Inc. will have an annual capacity of 70,000 metric tons. It will be located at the existing manufacturing site of Kolon Plastics in Gimcheon, Korea, which already includes a POM production. The start of operation is scheduled for the second half of 2018 creating in total the world’s largest complex for the production of POM.
“In the new joint venture the strengths of each company will be reinforced enhancing our overall competitiveness. Kolon Plastics’ globally leading technology and the efficiencies of the existing infrastructure will generate significant synergies. We are looking forward to this joint venture that may lead to further opportunities for cooperation,” said Hee Goo Jang, CEO of Kolon Plastics.
The products are to be marketed around the world separately by the two companies under their respective trade names and proprietary formulations. “Kolon and BASF have had an excellent business relationship for many years,” said Raimar Jahn, President of BASF’s Performance Materials division. “The markets for POM are growing around the world. Particularly in Asia the joint venture will strengthen our ability to support our customers with high-performing, innovative specialties.”
Following the start-up of the new plant in Korea in the second half of 2018, BASF will discontinue production of POM in Ludwigshafen.