SHANGHAI Petrochemical has signed a US$30 million joint venture deal with the United States-based Continental Grain, to produce liquefied petroleum gas (LPG).
The joint venture, which will have a registered capital of $24 million, will be 48 per cent owned by Shanghai Petrochemical and 52 per cent by the US-based company.
The venture will produce LPG products for markets in the eastern part of China.
The proposed new plant, which include the establishment of new production facilities and storage containers, will be built close to Shanghai Petrochemical's Shanghai plant.
The corporate secretary of Shanghai Petrochemical, Cai Hongping, said that the venture would invest $30 million in the first phase of the construction of the LPG plant.
The unit is expected to go operational in 1997 and it will have an annual production capacity of 300,000 tonnes of LPG.
