Shandong Haihua Group, a major chemical maker, has signed a preliminary agreement to form a joint venture with US investment firm Carlyle.

Shanghai Haihua co. said in a statement that it will have control of the venture. It will put assets including its 49 percent stake in the listed unit into the venture, while Carlyle will provide capital.

The two sides have until July 5 to reach a detailed agreement on the venture.