Polyamide High Performance GmbH (PHP), Germany, and China Shenma Group Co. Ltd. (Shenma), PR China, are to set up a joint-venture to manufacture nylon airbag yarns in China for Chinese and Asian markets.

The latest development follows a the strategic partnership agreement between the two companies in 2004. Subject to regulatory approvals, PHP and Shenma will establish a new manufacturing company - Shenma PHP (PingDingShan) Airbag Yarn Manufacturing Co., Ltd. - at PingDingShan in China's Henan province.

Opening in 2007 the facility will have an initial capacity of 3,000 tons pa, but this is set to double in 2009 with further expansion thereafter. Production will cover the full range of Enka Nylon airbag yarn types. A total of US$22.5 million will be invested in the project, including state-of-the-art spinning equipment.

A second joint venture business - PHP Shenma Airbag Yarn Marketing (Shanghai) Co. Ltd. - will be setup as the exclusive marketer of the yarns in China and other Asian countries.

"The establishment of our joint venture activities with China Shenma mark a strategic milestone for our company and is the next logical step of our already concluded strategic partnership," said Jochen Boos, managing director of PHP.

The partnership brings together the experience of PHP in development and production of high-performance polyamide 6.6. airbag yarns with Shenma's production abilities and its fully integrated raw material pipeline and infrastructure.

"As one of the leading airbag yarn suppliers in Europe and North America we understand the needs of the airbag industry for further globalization and the urgency to establish an integrated pipeline in the growing Chinese market and also other Asian countries. With this project we are confident that we can supply the full range of products in the same quality ann with the same professional support as we currently do in the Western Hemisphere," added Volker Siejak, business director of PHP.