Albemarle Launches Chinese Ag Chem Venture, Sees Expansion in Fine Chemicals

Albemarle Corp. (Baton Rouge, LA) has agreed in principal to build a joint-venture plant near Beijing, China. Slated for startup in 2000, the unit will initially produce alkylated agricultural chemical intermediates, and could eventually expand to manufacture other fine chemicals. Albemarle chairman/CEO Floyd D. Gottwald, Jr., calls the plant "an important step in Albemarle's strategic efforts to establish further its global presence in specialty and fine chemicals." The company already does 40% of its business outside the United States and has major facilities in six different countries.

The new company, Beijing Albemarle Yanshan Fine Chemical Co. Ltd., will be owned by Albemarle TCI Ltd., an affiliate of Albemarle Corp. (Baton Rouge, LA), and Beijing Yanhua Petrochemical Co. Ltd., a $650 million business listed on the New York and Hong Kong stock exchanges. It is affiliated with Beijing Yanshan Petrochemical Co., one of China's largest petrochemical operations and a company targeted for growth by Sinopec.

Albemarle has been in China since it established a representative office in Beijing in 1992. The new joint venture represents Albemarle's first multimillion dollar investment in China. Albemarle will hold a majority share of the business, while its Chinese partner contributes existing capital assets and infrastructure services.

The plant itself will be located within Beijing Yanhua Petrochemical's complex outside Beijing. Slated to open in the second half of 2000, it will have multiproduct and multiprocess capabilities. In addition to alkylates, it will be able to manufacture other fine chemicals as well.

The joint venture will make agricultural chemical intermediates that leverage off Albemarle's strength in alkylation technology. The company produces a range of orthoalkylated aromatic intermediates.

Key orthoalkylated intermediates for pesticides include 2,6- diethylaniline (DEA; 2,6-diisopropylaniline (DIPA); 2-methyl-6- ethylaniline (MEA); and ortho-tert-butylphenol (OTBP). Many of these products have other uses as well. DIPA finds application in pharmaceuticals, OTBP in fragrances. Albemarle uses the same orthoalkylation technology to make other intermediates: orthoethylaniline (OEA) for curing agents; 2,4-and 2-6-di-tert-butylphenol for antioxidants; and dethyltoluenediamine (DETDA) for polyurethane elastomers and thermoset curing agents.

For more information: Albemarle Corp., 451 Florida St., Baton Rouge, LA 70801-1785. Phone: 225-388-7402. Fax: 225-388-7848.

By Alan S. Brown