Sasol, Africa's top chemicals maker, said in a statement Sasol Chemicals Shanghai Co Ltd (SCS) would initially market products from the global Sasol Solvents business. Sasol Solvents operates in South Africa and Germany.

"The Chinese market is extensive and forms part of our vigorous pursuit of global growth opportunities in the chemicals sector," Reiner Groh, Sasol's group general manager for the chemicals unit said.

The Sasol Chemical unit supplies a wide range of products for use in aerosol, agricultural, cosmetic, fragrance, mining, packaging, paint, adhesive, pharmaceutical, polish, printing and other applications.

Chinese Commerce Minister Bo Xilai said last week that Sasol, the world's largest maker of oil from coal, is in talks with Chinese oil major Sinopec on coal liquefaction projects.

China, the world's top coal producer and consumer, is encouraging coal-to-liquid (CTL) projects to reduce its dependence on imported oil. Sasol has previously said its CTL plans in China are at a preliminary stage.