Songwon and Tangshan Baifu successfully conclude the formation of a joint venture for the manufacturing and sale of Thioester antioxidants

Ulsan, Korea – October 28, 2010 – Songwon Industrial Co., Ltd. and Tangshan Baifu Chemical Co. Ltd. announce that they have reached a definitive agreement to establish a joint venture to manufacture and sell Thioester antioxidants. The new company will be named Songwon Baifu Chemical Co. Ltd. and will be operational effective Q1, 2011, subject to all necessary legal approvals. The new company will have a capacity of 6.000 tons of Thioester antioxidants. Songwon will initially own a 30% share of the new company with the option to expand its shareholding to 50%. The joint venture will sell the Thioester products directly to the Chinese market, however, it will use the Songwon global network for all sales outside of China.

Jongho Park, Chairman and President of Songwon Industrial Co., Ltd., when signing the definite agreements said: ”We believe that this is a very important day for the Polymer Stabilizer business and for our customers. The synergies between the partners are far reaching. Tangshan Baifu brings expertise in producing Thioesters with their world scale fully backward integrated production capabilities. Songwon complements this with global sales, technical support, logistic and customer service network, as well as first class regulatory and EH&S expertise. With this venture we have created a major global player in the Thioester market that will have the Songwon trademark approach of high quality products, competitiveness, security and reliability of supply accompanied by strong technical service and application support.”

Weiqi Zhang, President and CEO of Tangshan Baifu Chemical Co. Ltd., stated: “We have built a strong manufacturing foothold and reputation in China for service and quality which we will now be able to deliver globally. In addition the Thioester business will benefit from Songwon’s extensive knowledge and innovation in additives which is complemented by their technology and significant market reach. We will build on each other’s strengths to ensure that Songwon Baifu Chemical Co. Ltd. will become a leading supplier and partner of choice for Thioester antioxidants to the global polymer market.”

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