Seoul – MCNS operating profit in 2017 doubled compared to 2016, according to figures released by the joint venture between Korea’s SKC and Japan’s Mitsui.
The company estimates that 2017 profit will be KRW 76 bn ($ 6.6m) on sales of around KRW 1 trn which are flat on 2016.
The MCNS joint venture, details of which emerged in 2015, puts the growth down to its combination of isocyanate and polyols businesses, which enables cross selling. Additionally, it has integrated research and development across the companies. This leads to faster product innovation, the firm added. It cited Nextiol, ‘an environmentally friendly polyol which can reduce the emission of VOC’ in finished polyurethanes by up to 50%.
The parents are rationalising production between Mitsui’s plant in Nagoya, Japan and Ulsan, Korea. The Nagoya plant is more suited to smaller production volumes. This leaves the Ulsan plant to concentrate on higher volume products. This is helping MCNS to increase its’ share of the Korean market, the company said.
Finally, MCNS said it is considering increasing capacity to help it generate KRW 2 trn sales in 2020. This could include opening new facilities at its polyol plants in Korea and Japan. It could also see a doubling of systems houses from 10-20 near its global clients. The company recently opened a systems house in Mexico and plans to open a systems house in India in 2018.
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