MOSCOW (MRC) -- Mitsui Chemicals Inc. and SKC Co. have announced plans to terminate their Mitsui Chemicals & SKC Polyurethanes (MCNS) joint venture based in Seoul, South Korea, according to Apic-online.
MCNS was established in 2015 to combine the polyurethane raw materials businesses of both Mitsui and SKC. MCNS has operations in both South Korea and Japan.
According to Mitsui, discrepancies have started to arise between Mitsui's policy of steadily improving earnings through the likes of high-performance products and bio-products and SKC's policy of quickly expanding global market in scale, prompting both companies to take a thorough look at how they should be running their operations in this field.
The parties have determined that it would be beneficial for each company to run its own operations in line with its specific strategy, if both companies are to further grow their businesses.
The dissolution is scheduled to occur at the end of December 2021. On 1 Jan. 2022, operations of MCNS-J will relaunch as the Polyurethane Division of Mitsui Chemicals. In March 2022, Mitsui will transfer shares in MCNS to reduce paid-in capital, and the liquidation of MCNS-J will be completed.
As MRC reported earlier, in May 2021, Neste, Mitsui Chemicals, Inc. and Toyota Tsusho Corp. announced they are joining forces to enable Japan’s first industrial-scale production of renewable plastics and chemicals from 100% bio-based hydrocarbons. In this collaboration, Mitsui Chemicals will use Neste RE, 100% bio-based hydrocarbons produced by Neste, to replace a part of the fossil feedstock in the production of a variety of plastics and chemicals at its crackers within Osaka Works during 2021. In doing so, Mitsui Chemicals will become Japan’s first company to use bio-based feedstock in its crackers. The collaboration between Neste, Mitsui Chemicals and Toyota Tsusho will enable brand owners and other potential clients in the Asian market, particularly in Japan, to start incorporating renewable plastics and chemicals into their products and offerings.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.