MeadWestvaco Corporation has boosted its presence in the South American chemical market through a joint venture with Chemserve, a South African chemical company. Under terms of the deal, MWV's specialty chemicals unit will become equal partners in Chemserve's existing Brazilian business unit, Resitec Industria Quimica Ltda.

The partnership combines MWV's long-standing presence in Brazil and expertise in pine chemicals with the success of Chemserve's oleochemicals business in South America. Resitec's current products include emulsifiers used in the production of synthetic rubber for tires, resins for adhesives and lubricants for machinery and metalworking. Through the joint venture, Resitec will expand its product offerings to serve pine chemicals markets within the region and to meet customers’ growing global needs.

"This partnership represents an important step for two known market leaders as they grow their presence in Brazil, which now has one of the world's largest economies," said Ed Rose, vice president with MWV's specialty chemicals group. "With this strategic move, we expand our footprint in the global pine chemicals marketplace by partnering with a strong Brazilian business."

The move into Brazil builds upon MeadWestvaco's global expansion in the pine chemicals industry from its tall oil refinery operations in DeRidder, La., and Charleston, S.C. Other initiatives include the launch of a pine chemicals joint venture in China, acquisition of Eastman Chemical Company's pine chemicals product lines and establishment of a paper chemicals alliance with Hercules Incorporated.

The new joint venture will include Resitec's headquarters and manufacturing facility located near Rio de Janeiro, and a new tall oil refinery currently under construction in Lages, Brazil. Start-up for the refinery is anticipated during the fourth quarter of 2008. Read more.