The establishment of the joint venture finalizes a partnership that began with an earlier memorandum of understanding, which was signed in June 1996, and a subsequent agreement signed in July 1997. Hercules will own a majority interest in the joint venture, which will employ a flexible technology that allows for the manufacture of an array of resins. The initial focus is on light-colored resins for adhesives and plastics applications, to be marketed in China and other Asia Pacific markets. The project is designed to ultimately produce 20,000 metric tons of hydrogenated hydrocarbon resins. Yanshan will be Hercules' second joint-venture partner in China.
China continues to be an area of key importance to Hercules and to our plans for continued growth.
This combination of our technology and marketing capabilities with Yanshan's technical expertise and infrastructure creates a strong supplier of these resins in the Asia Pacific markets. Hercules manufactures chemical specialty products for a variety of markets worldwide. Its businesses include Aqualon water-soluble polymers, Paper Technology, Resins, Food Gums and a majority interest in FiberVisions L.L.C., a joint venture in polypropylene fiber. Copyright 1997-2001 Hercules Incorporated.