Tokyo -- More details have emerged of the joint venture between Mitsui Chemicals and SKC, announced on 22 December 2014.
The joint venture follows the statement in February 2014 at Mitsui Chemicals' Q3 2013 results presentation by Toshikazu Tanaka, president and ceo who said: "with unwavering determination, we will initiate the measures and tactics full force to assure realisation of a V-shaped turnaround."
Tanaka was looking to restructure in an attempt to stem losses and return to profitability.
The proposed joint venture has no name yet, but the 50:50 firm will be based in Seoul, and is scheduled to come into existence on 1 April 2015, SKC and Mitsui said.
Mitsui added that it wanted to create the jv to "bolster global deployment of polyurethane business focusing on system products" and to "be a global comprehensive manufacturer of polyurethane material which provides value for customers."
The jv will build on the two companies' strengths in the automotive and appliance sectors. The jv will be back integrated into SKC's propylene oxide capacity in Ulsan, Korea. This will be held outside the jv but polyol produced there will be included.
Ulsan's 180kT/year output gives SKC the biggest stake in the polyol side of the equation. Mitsui is commiting 50kT/year at Nagoya, Japan, 40kT/year at Tokuyama and 8kT/year biopolyol at Vithail Caster Polyols, Gujarat, India.
Mitsui is committing its 200 kT/year MDI plant in Yeosu, Korea, 120 kT/year TDI at Omuta, Japan. Mitsui's 117kT/year TDI plant at Kashima, Japan and 60kT/year MDI at Omuta are also included but are scheduled to close in 2016.
ONce finalised, the firms say that there will be 10 ssystems houses. The three SKC systems houses in Beijing, Poland and the US will be owned directly by the jv. The seven systems houses in which Mitsui has a stake will be held via a Japanese subsidiary, itself 100% owned by the joint venture.
Away from the JV, Mitsui plans to establish a 5kT/year xylene diisocyanate (XDI) plant in Nagoya in October 2015 and to launch another 2kT/year speciality isocyanate plant and other specialty isocyanate derivative plants.