Chemtrade Logistics Income Fund, Toronto, and Kanto Group, Tokyo, on July 18 announced the formation of a joint venture, KPCT Advanced Chemicals LLC, aimed at building a new electronic-grade sulfuric acid production facility in Casa Grande, Ariz.
The facility will feature a nameplate capacity of 100,000 mt/y and will utilize Kanto Group’s production process, currently in use in Taiwan and Japan to supply semiconductor producers in Asia.
The $175-$250 million project will receive detailed greenfield engineering plans and cost estimates in fourth-quarter 2022. Commissioning is slated for 2024.
“For years, Chemtrade has been the primary manufacturer of ultrapure sulfuric acid in the North American market,” said Chemtrade President and CEO Scott Rock. “This joint venture allows us to expand our North American position and meet the growing needs of the semiconductor manufacturers.”
The U.S. Senate on July 19 voted 64-34 to advance a bill designed to incentivize the manufacture of semiconductors within the U.S. The bill would provide approximately $50 billion in subsidies to domestic manufacturers in an effort to increase competition with China.
The bill’s original version, first approved in 2021, would have delivered up to $250 billion in subsidies. A final vote on the bill is expected within days.
Chemtrade and Kanto Group own 49% and 51% of the jv, respectively.