Celanese announced to form a joint venture with Sichuan Wuliangye
Celanese, United States based global specialty materials company announced that it signed a Memorandum of Understanding (MoU) to form a joint venture with China based Push Group Co., Ltd, a wholly owned subsidiary of Sichuan Wuliangye Group Co., Ltd. The joint venture aims to produce cellulose acetate based specialty products, includes high-quality plastics and films. Celanese would be contributing technology and related operational activities and Push Group would be contributing existing assets related to production of cellulose acetate. The production capacity is expected to support Celanese’s consistent focus on cellulose acetate. The joint venture negotiation was completed on 21st December, however the deal is expected to be closed and executed by the end of March 2016.
TechSci Research depicts that the production of specialty grade cellulose acetate will help company to increase their contribution in the Chinese specialty cellulose acetate market as the penetration of cellulose acetate is continuously increasing in wide range of application areas such as football helmets, equipment housing, films and membranes.
According to “China Membranes Market Forecast & Opportunities, 2020” recently published market research report by TechSci Research, cellulose acetate is one of the prime raw materials for the production of reverse osmosis membrane. The Chinese reverse osmosis membrane market is expected to grow rapidly in future with significant growth in key markets, holding high potential, breakthrough technological innovations and increasing market of high tech cleaning systems. Reverse Osmosis membranes are highly adopted by the desalination installers, which in turn, contributing to the demand for cellulose acetate in China.