MAINLAND military industrial giant China North Industries Group has signed a letter of intent with US-based Boston Enterprise Group to launch a petrochemical joint venture.
The deal was struck yesterday following a week-long Peaceful Use of Military Industrial Technology exhibition in Hongkong.
A total of US$220 million will be committed to the project in Liaoyang, Liaoning Province.
The China North Industries Group operates a plant there which occupies a total area of 32 million square feet.
The Chinese side will hold a 40 per cent stake in the joint venture while the Boston Enterprise Group will take up the remaining 60 per cent.
The joint venture is capable of turning out 40,000 tonnes of MDI a year. MDI is a petrochemical material for applications in motor vehicle, construction industries.