Israeli-based Oil Refineries has announced that its wholly-owned subsidiary Gadiv Industries has signed a letter of intent for the purchase of 50% of a Chinese petrochemical firm.

The unspecified company benefits from the status of a wholly foreign owned enterprise in China. The acquired company will engage in the manufacturing of tri-maleic anhydride (TMA), and para diethyl benzene (PDEB).

According to the deal, Gadiv will receive an existing plant in China that manufactures TMA and PDEB and all of the intellectual property, know-how and technology pertaining to the existing plant.

In addition, the acquired company will take steps to set up an additional plant with facilities for the manufacture of TMA and PDEB. The additional plant will be set up in China on property for which the acquired company has usage rights.

Gadiv will purchase from the seller 50% of its shares in the acquired company for $33.5 million. The shares will be purchased by Gadiv from a foreign company registered in Hong Kong.