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17. July 2019

MCNS: New PU system house in Saint Petersburg

MCNS (Mitsui Chemicals & SKC Polyurethanes Inc.), a polyurethane business established as a joint venture of SKC and Mitsui Chemicals Inc. of Japan, announced that it will build its 12th system house worldwide in Saint Petersburg, Russia. According to MCNS, the facility will serve as a manufacturing and sales base that provides premium services, such as the customisation of polyurethane foam material formulations to cater to individual customer needs.

At the St. Petersburg International Economic Forum (SPIEF) 2019 held on 8 June 2019 in St. Petersburg, Russia, MCNS signed an agreement for investment in the special economic zone (SEZ) and the acquisition of land for the construction of its new system house in Russia with officials of the city government and the president of the SEZ among others. Under the terms of the agreement, MCNS will receive administrative support for approval and licensing for the construction of the factory. MCNS said it plans to complete the system house, with a production capacity of 15,000 t/y, by the first half of 2020. A corporation was established in April 2019 for this purpose, and factory design is currently under way.

MCNS signed an investment agreement with officials of the city government and the president of the special economic zone in Saint Petersburg, Russia: Eui Joon Lim, CEO of MCNS (4th f. l.), Tamara Rondaleva, CEO of SEZ of Russia (5th f. l.), Shingo Shibata, Co-CEO of MCNS (6th f. l.), and Andrey Ivanov, Vice President of SEZ (7th f. l.). (Source: SKC)

MCNS signed an investment agreement with officials of the city government and the president of the special economic zone in Saint Petersburg, Russia: Eui Joon Lim, CEO of MCNS (4th f. l.), Tamara Rondaleva, CEO of SEZ of Russia (5th f. l.), Shingo Shibata, Co-CEO of MCNS (6th f. l.), and Andrey Ivanov, Vice President of SEZ (7th f. l.). (Source: SKC)

MCNS said Russia is the 11th largest economy in the world in terms of GDP and has a solid domestic market with a population of 140 million. The annual demand for automobiles and refrigerators, whose production requires large amounts of polyurethane, is 3 million and 4 million units, respectively. The annual average growth rate of the PU market is about 5 %, with demand for polyurethane expected to increase in the long term.

Major Korean and Japanese clients of polyurethane system products, including Hyundai Motor Company, Toyota and Nissan, have established a strong presence in Saint Petersburg. Hyundai is ranked second in terms of market share, while LG Electronics has occupied the second-largest share of the refrigerator market. Although MCNS will supply products only to Korean and Japanese clients in Russia through the new system house for the time being, the company said it plans to expand its supply to Russian companies in the future.

A spokesperson for MCNS said: “The new system house in Saint Petersburg will be the twelfth one opened by MCNS around the world, following those established in the USA, Mexico, Poland and India among other countries. In addition to the new system house in Russia, MCNS will continue to expand its international bases mainly in fast-growing regions.”

MCNS was established in July 2015 as a 50:50 joint venture of SKC and Mitsui Chemicals. With a total production capacity of 280,000 t/y of polyol, 350,000 t/y of MDI and 120,000 t/y of TDI, the company supplies PU raw materials to diverse countries, including the USA, Mexico, China, Poland and India.

www.mcnskc.com/
www.mitsuichem.com
www.skc.co.kr

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