SEOUL, Korea—SKC and Mitsui Chemicals have signed a joint venture agreement to consolidate the polyurethane material businesses of both companies by April 1, according to SKC.
The firms target sales for the joint venture at $2 billion per year by 2020. SKC said its strategies include the consolidation of products, development of new ones to improve profitability and the exploration new business globally.
According to Mitsui Chemicals, the two firms will each hold a 50 percent stake in the joint venture. It will be headquartered in South Korea.
Mitsui said the venture will produce toluene diisocyanate; polymethylene polyphenyl isocyanate, methylene diphenyl diisocyanate and their variants; polyether polyols; polyester polyols; biomass polyols; and other polyols including polymer polyols.
The joint venture will operate four facilities in Japan—located in Nagoya, Tokuyama, Omuta and Kashima—two in South Korea—in Yeosu and Ulsan—and one in Gujarat, India.
Mitsui said TDI will be produced at the Omuta site. The site in Kashima also will produce TDI until 2016, according to the release. Omuta will produce MDI until 2016, with a second MDI site at Yeosu. Polyols will be produced at the remaining sites, with Gujarat scheduled to come online in 2015.
In February, Mitsui Chemcials announced plans to restructure its polyurethanes business and close multiple plants. Mitsui's polyurethane business saw a loss of around $39 million in 2013, which was an increase from losses of $25.3 million in 2012.