Clariant Forms JV for Phosphorus Pentoxide Production     

On March 16th, Clariant announced to establish a joint venture with Kunming Gaoheng Huagong Chemical Industry Co., Ltd. and Panchem International Trading and Industrial Co. in Kunming, Yunnan province, in order to secure supply and meet the growing demand for phosphorus pentoxide (P2O5).
    A state-of-the-art phosphorus pentoxide plant will be built and is scheduled to go on stream in the first quarter 2010.
    For Clariant's Pigments & Additives Division, P2O5 is a crucial ingredient in several of its high-performance products. A range of pioneering flame retardants for intumescent coating systems, is a major user of P2O5, with a large, increasing demand in Asia, Europe, and the United States.
    P2O5 is also a major component in the manufacture of quinacridone pigments and in other multifunctional additives. Other important markets for P2O5 are the agro and vitamin-producing industries.
   The growing market for P2O5 and its downstream products cannot be served adequately by Clariant's P2O5 production out of its facility in Knapsack, Germany.
   Yunnan province is a key location for yellow phosphorus production, which is the feedstock for P2O5.
   Kunming Gaoheng Huagong Chemical Industry Co., Ltd., an exporter of yellow phosphorus, will provide the key raw material and the infrastructure. Panchem International Trading and Industrial Co., a long-term partner of Clariant, will provide the logistic services. Clariant will contribute the manufacturing know-how and handle the sales of P2O5 from the new plant, through its international sales organization.
   Clariant's Asia operation spans across over 30 countries with manufacturing facilities, technical centers and offices employing more than 5 300 people in total. The company's priority is to make products and services available locally for the emerging markets in Asia, in order to shorten delivery lead time and enhance supply chain efficiency.