Momentive expanding manufacturing capacity in China

A Columbus-based chemicals producer expects to break ground on a manufacturing facility in China early next year now that it has signed an agreement with a specialty chemical company based in Taiwan.

Momentive Specialty Chemicals Inc. said Wednesday that it signed a joint venture agreement with UPC Technology Corp., making official an agreement the companies entered into in May to build a joint facility for producing phenolic resins.

The joint venture, dubbed Momentive Union Specialty Chemicals, will build its first Chinese plant next to an existing UPC complex in Zhenjiang, Jiangsu, China, according to a press release. The facility is expected to be completed during the first quarter of 2013.

The companies did not disclose terms of the deal.

Momentive is trying to expand its penetration in Asia, where it said demand is growing. The company is building an acids plant in China’s Shanxi Province and has a chemical facility in South Korea.

UPC Technology produces petrochemicals as part of the holding group MiTac-Synnex Group, which recorded $21.5 billion in 2010 sales.