Songwon extends production of antioxidants in China

Songwon and Tangshan Baifu Chemical announced the start of a joint venture to manufacture and sell thioester antioxidants. The two companies have signed a memorandum of understanding whereby Songwon shall take an initial stake of 30% in Tangshan Baifu Chemical with the option to extend its share to up to 50% afterwards. The joint venture should be operational by January 1st, 2011 and will initially focus on the manufacture of Songnox DLTDP and Songox DSTDP thioesters for the Chinese and global market. This agreement marks Songwon first step towards building an active manufacturing presence in China. In the long term the company intends to integrate into the production of polymer additives, currently produced outside, in its factories in South Korea.