South African energy and chemicals group Sasol has selected Chile’s Enaex, a subsidiary of the Sigdo Koppers Group, as its preferred partner to negotiate terms and conditions for creating an explosives joint venture.

Following a strategic review of its assets in 2017, Sasol identified its explosives business as having tremendous growth potential that could be unlocked through collaboration, including a jv.

The Johannesburg-based company said that after a “stringent” evaluation process, it selected Enaex “based on its track record and potential to create a best-in-class technical service supplier, offering a one-stop shop for explosives and blasting solutions.”

Enaex would be the controlling partner, taking responsibility for the jv’s management and operational control. The jv would be formed by spinning off certain assets and associated activities within the current explosives value chain of Sasol South Africa’s Base Chemicals business into a new company, which would include activities in both South Africa and the rest of the countries in Southern Africa.

Sasol said that as part of the exclusive negotiations, Enaex will be required to continue to ensure “reliable and sustainable” ammonia offtake for Sasol South Africa, maintain Sasol’s safety record and be able to offer career opportunities to Sasol’s existing employees in the explosives business.

As well as being subject to successful negotiations, the transaction will also need external approvals, including that of the South African Competition Commission.

The Chilean company said the move is part of its strategic plan to continue strengthening its international presence in the most important mining regions of the world.

In separate news, Sasol has announced the formal opening of its new alkoxylation plant in Nanjing, China. The plant more than doubles the group’s regional production capacity to around 150,000 t/y, with additional facilities for producing anionic surfactants.

Located in the Nanjing Jiangbei New Material Hi-Tech Park (formerly known as the Nanjing Chemical Industrial Park), the plant can operate using either branched or linear alcohols to meet different customer requirements in applications such as detergents, personal care, textile and leather, metalworking and lubrication, inks, paints and coatings as well as oil & gas, enhanced oil recovery and industrial cleaning.

Sasol has been producing surfactants in China since 1992 but this plant is its first fully-owned facility in Asia.

“Our expansion in China underpins our chemicals business ambitions to diversify geographically, participate in high-growth markets and grow in differentiated applications,” said Bongani Nqwababa, Sasol’s joint president and CEO. “For more than 25 years, we have been active in providing high-quality surfactants in China, where we see ongoing shifts towards high-value and differentiated segments.”

The company added that the project is not only a significant expansion of its current operational footprint, but also the first step towards a “robust, differentiated expansion strategy” for Sasol’s Performance Chemicals business throughout the broader Asian region.