Sociedad Quimica y Minera de Chile S.A., or SQM, (SQM) announced that it has entered into an agreement with Migao Corp. to create a joint venture for the production and distribution of potassium nitrate in China.
The agreement, which was signed on May 18, establishes a 50/50 contribution to the joint venture. The company said that the first step of the agreement would be the construction of a new 40 thousand metric ton potassium nitrate facility, which will require a total investment of US$20 million and should be operational by the first quarter of 2009.
SQM added that Migao, through its wholly owned subsidiaries, will continue to produce potassium nitrate in China, and the product will be distributed by the newly formed joint venture. Further, the joint venture will handle exports of potassium nitrate produced by Migao or the joint venture, as well as imports of SQM's potassium nitrate to China.
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