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S SBC producer Kraton Performance Polymers, which has been scouting for an Asian production base, has entered into a 50:50 joint venture with Taiwan's Formosa Petrochemical to build a 300 tonnes/year hydrogenated styrenic block copolymer (HSBC) plant in Mailiao.

To be operational in the second half of 2013, the plant will cost around US$165 to US$200 million. Kraton said it will employ its latest state-of-the-art technology for producing HSBC's.

The choice of Formosa is due to its petrochemical complex, which will provide the joint venture with on-site, competitive feedstock inputs, including butadiene, as well as site services and utilities.

As proposed in the framework agreement, the design of the joint venture plant will incorporate Kraton's proprietary polymerisation technology and the plant will produce Kraton's high value-added HSBC polymer grades. The plant will be operated by the joint venture and Kraton will undertake the global marketing of all products manufactured at the facility.

Kraton began looking for a site last year to build a new HSBC plant in Asia. The company has already relocated its Shanghai office to a new site double the size of the previous location and to accommodate its growing staff numbers in China.