BEIJING, Apr 10, 2008 (SinoCast via COMTEX) -- Japan-based Mitsubishi Chemical Corporation said on April 8, 2008 that it would set up a Beijing joint venture with Mitsubishi Engineering-Plastics Corporation (MEP) and China Petroleum & Chemical Corporation (SHSE: 600028, SEHK: 0386, NYSE: SNP, Sinopec).

With a total investment of around USD 300 million, the new venture is expected to produce 150,000 tons of bisphenol A (BPA) and 60,000 tons of polycarbonate resin a year. All the manufacturing equipment is scheduled to fit the place before the spring of 2010. Mitsubishi Chemical and MEP are to take a combined 50% stake in the new venture and Sinopec will take the rest.

Polycarbonate resin is used to make CD-ROM and auto parts and BPA is an important raw material for the production of epoxy resins and polycarbonate resins. The production of each ton epoxy resin would need about 750 kilograms BPA. China, the No. 1 epoxy resin producer and consumer worldwide since 2006, made around 720,000 tons in 2007, and used around 400,000 tons imported and about 100,000 tons home-made BPA in the production.