(Yicai Global) Oct. 25 -- Chinese flame-retardant product maker Jiangsu Yoke Technology Co. [SHE:002409] will team up with renowned South Korean electronic chemicals producer Jaewon Industrial Co. to set up two joint ventures in China and South Korea.

The pair have signed a memorandum of understanding to invest around USD260 million in the new Chinese firm, based in Yixing city in Jiangsu province, which will build three factories in the country to produce electronic chemicals for semiconductors and display panels. Jaewon will control the Chinese joint venture.

Once the plants are up and running, the two firms expect annual sales revenue to reach USD630 million.

The electronic chemicals to be produced include semiconductor materials for photolithography, which is the process used to create printed circuit boards, cleaning and wet itching, all of which the listed firm is capable of doing.

The duo's second joint venture, based in South Korea, will also be controlled by Jaewon.