Hi-tech polymers firm Victrex has entered into a joint-venture between its Hong Kong subsidiary, and a Chinese chemicals firm.

Victrex, which has a major site at Thornton, has teamed up with Yingkou Xingfu Chemical Company, to build and operate a new PEEK polymer manufacturing facility in Liaoning.

The deal is subject to certain performance conditions, including finalising land purchase and permit applications and will see Victrex take the lead as majority partner.

The move will expand its portfolio of PEEK and PAEK grade polymers, in anticipation of a range of significant growth opportunities across several markets in China, as well as aligning with China’s Made in China 2025 initiative.

Victrex’s share of the investment is expected to total £32m, funded in cash, with around £28m of capital expenditure and £4m start-up costs.

Jakob Sigurdsson, Chief Executive of Victrex, said: “Overall, we believe this is a good entry point to a China manufacturing operation, working with an established partner and offering an attractive returns profile.”