Solvay is to work with Chinese company Zhejiang Lantian Environmental Protection Hi-Tech on a joint venture to produce and supply hydrogen fluoride (HF).
HF is an essential building block for many high-value added fluorinated products and the joint venture is aimed at fulfilling future needs of both companies.
A fluorinated polymer production unit is scheduled to open in Changshu, China, in the second half of 2007 as a result of the deal.
The HF joint venture has yet to be approved by regulators but operations are scheduled to start next year under the name Zhejiang Lansol Fluorchem.
Fluorochemicals producer Lantian will own 70% while the Solvay chemical and pharmaceutical group will hold the remaining 30% of the joint venture.
A production unit with total annual production capacity of 20,000 tonnes will be located in the Zhejiang Quzhou Hi-Tech Industrial Park, which is 500km southwest of Shanghai.
Solvay also plans to open a production facility for fluorinated chemical specialities next year in Onsan, South Korea.