In order to secure supply and meet the growing demand for phosphorus pentoxide (P2O5), Clariant is establishing a joint venture with two Chinese partners in Kunming in the Chinese province of Yunnan. A state-of-the-art phosphorus pentoxide plant will be built and is scheduled to go on stream in the first Quarter 2010. Clariant claims that the growing market for P2O5 and its downstream products cannot be served adequately by its P2O5 production out of its facility in Knapsack, Germany. The joint venture partners are Kunming GaoHeng Huagong Chemical Industry, an established Chinese exporter of yellow phosphorus that will provide the key raw material and the infrastructure, and Panchem International Trading and Industrial, a long-term partner of Clariant that will provide the logistic services. Clariant will contribute the manufacturing know-how and handle the sales of P2O5 from the new plant, through its international sales organization.