SKC and Mitsui Chemicals to consolidate PU material businesses

SKC and MCI target to form the new 50/50 joint venture company by 1 April 2015, subject to completion of necessary procedures, such as the obtaining of relevant approvals and licenses. The combined businesses are expected to have revenues of approximately USD 1,5 billion in 2015. According to the companies, the JV is headed to be a global manufacturer of polyurethane materials and targets sales of USD 2.0 billion per year around 2020. The partners are planning to establish a global headquarters for the new joint venture company in Korea.

SKC and MCI said basic strategies of the joint venture are as follows:

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

The JV intends to maximise the synergy effects by integrating system product businesses. The knowledge and information accumulated by SKC and MCI over the years will be shared and utilised by the JV to provide solution to customers.

Products, locations & capacities

TDI

• 120 kt/y in Omuta, Japan
• 117 kt/y in Kashima, Japan (until 2016)

MDI and variants

• 60 kt/y in Omuta, Japan (until 2016)
• 200 kt/y in Yeosu, Korea (Kumho Mitsui Chemicals, Inc.)

Polyols

• 180 kt/y in Ulsan, Korea
• 50 kt/y in Nagoya, Japan
• 40 kt/y in Tokuyama, Japan
• 8 kt/y in Gujarat, India (from 2015, biomass polyol, Vithal Caster Polyols Pvt Ltd.)

PU systems locations

• Beijing, Tianjin, Suzhou, and Foshan in China
• USA
• Poland
• Thailand
• Indonesia
• Malaysia