Private equity group takes stake in Bluestar

ERJ staff report (DS)

New York -- US Private equity company The Blackstone Group has bought a 20 percent stake in China National Bluestar (Group) Corp. with an investment of up to $600 million.

Bluestar has many activities in the speciality chemical sector, including silicone manufacturing. In February 2007 it bought all Rhodia's silicone-related business activities, products, employees and manufacturing assets, including plants in Rock Hill, South Carolina and Venture, California.

In May 2008, Bluestar and Cabot Corp. said they would create a joint venture company making fumed silica for reinforcement of silicone rubber. The companies said Cabot Bluestar Chemical (Tianjin) Co. Ltd. will invest about $40 million in the Tianjin, China, plant, which will the have capacity to produce about 7000 metric tons per year. The firms said they expect the facility will begin operations in 2010.

Bluestar said it possesses the biggest organo-silicone production unit in China, which ranks top six in the world, and the largest bis-phenol A production unit in China. Altogether, said Bluestar, it has 25 manufacturing plants and 4 scientific research institutes in China. It also has 15 manufacturing plants and 7 research and technology service institutes overseas; its marketing network expands to over 140 countries around the world.

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Press release from Blackstone