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Mitsui Chemicals and SKC to Consolidate Polyurethane Material Businesses

December 22, 2014
Mitsui Chemicals, Inc.

Mitsui Chemicals, Inc. (Tokyo: 4183; President & CEO: Tsutomu Tannowa; “MCI”) and SKC Co., Ltd. (Seoul, Korea; CEO: Jang Suk Park; “SKC”) announced the signing of a joint venture agreement to consolidate the polyurethane material businesses of both companies.


（From left: Jang Suk Park, CEO of SKC & Tsutomu Tannowa, CEO of Mitsui Chemicals）

MCI and SKC target to form the new joint venture company (“JVC”) by April 1, 2015 subject to completion of necessary procedures, such as the obtaining of relevant approvals and licenses.
The JVC is headed to be a global comprehensive manufacturer of polyurethane materials which provides value for customers and targets sales of US$2.0 billion per year around 2020.

Basic strategies of the JVC are as follows:

  1. Satisfy customer needs in growing markets
    The JVC will fully utilize the global networks of MCI and SKC covering Far East Asia, China, ASEAN, Europe, and the Americas based on close relationships with customers and the provision of quick and efficient technical services.
  2. Explore new businesses globally
    The JVC will develop new applications and customers through consolidation of products and technologies of MCI and SKC.
  3. Improve profitability
    The JVC will secure global top cost competitiveness by optimizing resources / maximizing efficiency and taking advantage of parent company raw materials.

The JVC intends to maximize the synergy effects by integrating system product businesses. The knowledge and information accumulated by MCI and SKC over the years will be shared and utilized by the JVC to provide total solutions to customers.

Outline of Joint Venture Company

Company name To be determined
Location of head office Republic of Korea
Commencement of operations April 1st, 2015
Shareholding Ratio MCI 50％, SKC 50％
Business Development, manufacturing, and sales of polyurethane materials
Revenue Approximately US$1,500 million in 2015
Products, Locations & Capacities Products Location
TDI Omuta, Japan 120kta
Kashima, Japan※1 117kta
MDI Omuta, Japan※1 60kta
Yeosu, Korea 200kta (Kumho Mitsui Chemicals, Inc.)
Polyol Ulsan, Korea 180kta
Nagoya, Japan 50kta
Tokuyama, Japan 0kta
Gujarat, India※2 8kta (Vithal Caster Polyols Pvt Ltd.)
System products Tianjin, Suzhou Foshan and Beijing in China, Thailand, Indonesia, Malaysia, United States, Poland
Consolidation
scheme 		（1）global headquarters will be established in Korea
（2）The headquarters will succeed SKC business with its affiliate companies and own all shares of the Japanese subsidiary
（3）3The Japanese subsidiary will succeed MCI business with its affiliate companies
TDI
: Toluene diisocyanate
MDI
: Polymethylene polyphenyl isocyanate, methylene diphenyl diisocyanate and their variants

Polyol: Polyether polyols, polyester polyols, biomass polyols, and other polyols including polymer polyols

System products: Mixture of polyols, other raw materials, and additives

※1
Until 2016
※2
From 2015, Biomass polyol

Attachments

Mitsui Chemicals and SKC to Consolidate Polyurethane Material Businesses (PDF : 427.95KB)PDF
Reference Material (PDF : 1.06MB)PDF