Chinese joint ventures

Months later, Mr. Yoon would invite Houston and Cathy along with Mark and his wife to China to formally sign the Joint venture agreement. Phillips was getting divorced and Houston adamantly refused to attend with his wife or by himself, stating he had an entertainment "gig" that he could not cancel. Phillips and his soon to be ex-wife attended, but right before their return to the U.S., a man with the Chinese Ministry of Defense showed him an extraordinary file that would change his life. 

A joint venture (J V) allows a combination of tangible and intangible assets of the partners in a way to optimize the combined offering. JVs are popular in the chemical industry, particularly between Western and Chinese companies in China. It has to be pointed out, however, that the of JV failure rate is quite high. This is particularly the case for horizontal JVs, where all activities, such as R D, production, and M S, are shared. The main reasons are culture clashes that prevent the expected synergies and conflicts of interests with other activities of the partners. 

The Chinese chemical market is attracting huge foreign direct investments. Between 1993 and 2003, investment projects amounted to around EUR 20 billion of contractual FDI, with Bayer, BASF, Shell, and BP the four biggest investors. Over the last ten years, five percent of foreign direct investment was into the chemicals sector. Multinational corporations (MNCs) tend to enter via joint ventures partially driven by the need for feedstock access, but wholly foreign-owned enterprises will become more common following China s membership of the WTO. 

In the late 1950s, the volume of reported remittances dropped off sharply. Instead of paying remittances directly to relatives, expatriate Chinese invested heavily in both mainland China and in foreign joint ventures with the Peking government. The flow of remittances was capitalized in joint ventures with Peking, and relatives back home received dividends from these investments. 

As noted, the financial relationship shifted into joint ventures in Southeast Asia between PRC-owned institutions and expatriate Chinese, with a heavy concentration in narcotics traffic... 

An example of the latter is the development of the CSPC-Nanhai petrochemical project in China. This development between Shell and its Chinese partners is, with an investment of 4.3 billion, the largest ever Sino-foreign joint venture. Some 2.3 million tonnes of product will be produced in the plant each year, feeding local demand from manufacturers of telephones, TV sets, computers, cameras, car components, and so much more. 

USA, which formed later a joint venture with Archer Daniels Midlands, called Telles, commercializing now PHA products under the brand Mirel. More recently Metabolix announced termination of Telles joint venture and signed a distribution and supply agreements with the Chinese Tianjin GreenBio Materials Co [65],... 

The Dead Sea Bromine Group has formed joint ventures in both China and Japan to enhance its presence in world markets. In China it has teamed up with Ochean Chemicals, the largest Chinese producer of bromine. The second JV is with DKS of Japan to produce and market worldwide products based on DKS s technology. Dead Sea Bromine has also started up a large facility for the manufacture of poly(pentabromobenzyl) acrylate, a flame retardant used in polyamides and thermoplastic polyesters. 

RusNano (Russian Corporation of Nanotechnologies) and the Chinese group Thunder Sky signed a joint venture agreement to build the first Li-ion battery factory in Russia. 

While violent confrontations between local workers or residents and Chinese project teams of the type that have occurred in Africa are rare, there have been widely publicized standoffs between villagers and workers for two Chinese-Cambodian joint ventures that have been granted large agricultural concessions... 

METEOR A process for making ethylene glycol from ethylene oxide. Developed by Union Carbide, first operated in 1994, and now offered by Dow Chemical Company and Aker Kvaerner. A plant in Kuwait started operating in 2008. The first Chinese plant was a joint venture of Sinopec and Sabic and started operating in Tianjin in 2010. 

Also in 2001, Mitsubishi Rayon Co Ltd and Marubeni Corp aimounced plans to build a new 40,000 tpa plant for injection moulded PMMA in China. The joint venture, Nantong Rayon Chemical, is scheduled to go on stream in Jiangsu province near Shanghai in autumn 2003, with product to be sold on the Chinese market. 

Sino-Ethiop Associate (Africa) PEC (SEAA) was established in March 2001 as a joint venture between an Ethiopian company, Zaf Pharmaceuticals PEC, and two Chinese companies (China Associate Croup and Dandong JINWAN Croup). SEAA produces empty hard gelatin capsules and sells them to pharmaceutical factories in Africa and the Middle East. Recently, SEAA completed its expansion project and doubled its production capacity, to 2.4 billion capsules annually. SEAA has recently acquired Certificate of PIC/S conformity. It will be shown later that companies established through joint venture have been generally successful. 

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