Polish, Chinese chemicals groups sign cooperation deal

PCC Rokita and Shandong Shida Shenghua, Polish and Chinese chemicals groups, respectively, signed a contract to launch preparations for investments in the production and sale of organic carbonates in Europe, the Polish firm said in a statement on Monday.

The first stage of the investment is to include construction of an installation with a production capacity of 20,000 tonnes per year. The cost of this project has been estimated at ca. EUR 22 million, according to the statement.

Pursuant to the agreement, a special purpose vehicle (SPV) is to be established in Poland, to which Shida will grant a license for the use of organic carbonate production technologies. The Chinese company will hold 51 percent of the SPV shares and PCC Rokita 49 percent.

PCC Rokita will provide the media necessary for the production, as well as the company's premises in Brzeg Dolny, south-western Poland. The cooperation of both companies is likely be extended to Germany, the statement also said.

The companies envisage a further development of their cooperation, according to the statement. The second stage of the project would involve the production of an extended portfolio of components for batteries.