Megachem, the speciality chemical solutions provider, says it has gone into the business of manufacturing of expandable graphite.

On March 9, the company’s 36.19%-owned associated company, Megachem (Thailand), incorporated a joint venture (JV) in Thailand known as Mega Fuji Graphite Limited, with an initial registered capital of 5 million baht ($218,842).

Megachem (Thailand) has an equity interest of 49% in the JV, while the remaining 51% stake is owned by Fuji Graphite Works.

SEE:Megachem reports 32% jump in FY2020 earnings

Megachem Limited, through its shareholding in Megachem (Thailand), has an indirect equity interest of about 17.7% in Mega Fuji Graphite.

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According to the statement put out by Megachem Limited on March 9, Mega Fuji Graphite’s principal activities consist of the production and sales of expandable graphite.

“This joint venture seeks to derive synergistic value by tapping on Fuji Graphite’s deep expertise in the production of expandable graphite and our extensive distribution network in Asia,” says the company.

Shares in Megachem closed flat at 40 cents on March 9.