(Yicai Global) July 24 -- Qixiang Tengda Chemical has won permission from two German companies to use their technologies in its upcoming propylene oxide factory, helping the Chinese company to strengthen its market position and expand its product range.

Evonik Degussa, one of the world's largest specialty chemicals firms, and ThyssenKrupp Industrial Solutions, a leading supplier of machinery for chemicals plants, have agreed to supply their technologies to the new plant, the Zibo, Shandong province-based firm said in a statement. No financial arrangements were disclosed.

Qixiang Tengda said last December that it would set up a joint venture with SKC, a leading chemical materials producer, to build a propylene oxide plant with an annual capacity of 300,000 tons. The new facility will give the firm a better position in the C3 industrial chain making propane, propene and propylene oxide. It will also allow Qixiang Tengda to extend its product scope from C4 to C3, helping to maximize up- and downstream links with its current propane dehydrogenation project and boosting profitability.

Evonik Degussa will provide a license and technical services for the manufacture of hydrogen peroxide, and both Evonik Degussa and ThyssenKrupp will provide the same for propylene oxide production.

The licenses are permanent and exclusive to the plant. The two Essen-based companies have agreed not to grant any third party in Shandong province similar licenses within the next five years.

Propylene is an important starting product in the petrochemical industry, used in plastics, fibers and packaging.