TOKYO—Mitsui Chemicals Inc. plans to acquire Asahi Kasei Corp.'s Sunvieo thermoplastic styrene elastomer business.
The Japanese materials suppliers expect to sign the deal Dec. 1, according to Mitsui, which already supplies thermoplastic elastomers, particularly to the automotive industry.
With production sites in Japan and China, Sunvieo will add an undisclosed capacity for TPS to Mitsui's elastomers portfolio.
Mitsui's Milastomer-branded TPEs include thermoplastic vulcanisates which are used in automotive interiors, weatherstrip and steering gear boots. The company also makes thermoplastic olefin elastomers, which is used for parts such as airbag covers.
The TPS acquisition from Asahi will allow Mitsui to increase its presence in many industries, including automotive parts and consumer products. The acquired unit's TPS technology also would help Mitsui "further differentiate" its existing Milastomer lineup from the competition.
In October, Mitsui started up a production line for its Milastomer TPEs in Chiba, Japan, adding capacity of 5,000 metric tons per year. The company currently produces 45,000 tons of these materials annually in Japan, China, Germany and Thailand.