MOSCOW (MRC) -- Kumho Petrochemical has recently agreed to purchase the 50% stake of Kumho Polychem held by its joint venture partner, JSR, making Kumho Petrochemical the sole owner from July 2021 onward, according to Apic-online.
Kumho Polychem, established in 1985, has a production capacity of 220,000 t/y of ethylene propylene diene monomer (EPDM). It also produces thermoplastic vulcanizate, and other materials used in automotive and other industries.
Value of the transaction was not disclosed.
"This decision was made to enhance the group's compet-itiveness as a whole, based on the competence that Kumho Petrochemical has built in the synthetic rubber industry over the years," Kumho Petrochemical noted.
As MRC wrote before, in April 2021, Kumho Mitsui Chemicals Inc. said it will invest about 400 billion won (USD358.1 million) to expand its chemical manufacturing factory in South Korea's southwestern region. The joint venture between Korean synthetic rubber maker Kumho Petrochemical and Mitsui Chemicals of Japan said its shareholders approved the investment plan to scale up a methylene diphenyl diisocyanate (MDI) factory in Yeosu, 455 kilometers southwest of Seoul. MDI is a core material of polyurethane, which is used in various products, including refrigerators, building materials, car interior and exterior materials, and LNG vessels.
EPDM is used in the production of block comopymer of propylene (PP-block), rubber products, spongy products, for insulating wires and cables; EPDM in combination with other rubbers is also used for the manufacture of tires and a number of polypropylene (PP) parts; in housing construction - as a sealant, waterproofing and roofing (roll) material.
According to MRC's ScanPlast report, Russia's PP production increased to about 851,100 tonnes in first five months of 2021, up by 13% year on year. Three producers increased their output.