Texas-based chemicals company Huntsman has announced a joint venture with a subsidiary of Sinopec to build and operate a chemical plant in Nanjing, Jiangsu province.

Huntsman will own 49 per cent of the joint venture, Nanjing Jinling Huntsman New Materials, and Sinopec Jinling will hold the remainder.

The plant will produce propylene oxide, a chemical used in the production of polyethers, the main component of polyurethane foams. It also will make methyl tertiary butyl ether, a compound used in petrol to reduce carbon monoxide and ozone levels caused by vehicle emissions.