Mitsui Chemicals dissolving PU raw materials joint venture With SKC

Tokyo – Mitsui Chemicals, Inc. and Seoul-based SKC Co. have announced plans to dissolve their joint venture agreement for the production of polyurethane raw materials by the end of the year. 

The move, said Mitsui Chemicals on 30 Sept, will end the operations of Seoul-headquartered Mitsui Chemicals & SKC Polyurethanes Inc. which manufactures raw materials such as TDI, MDI, PPG and system products.

The two partners established the JV in July 2015 to maximise synergy and capture demand in growth markets.

However, said Mitsui, 'discrepancies started to arise' between the two sides over the course of the partnership.

While Mitsui Chemicals’ policy focused on improving earnings through the likes of high-performance products and bio-products, SKC’s policy was geared towards quickly expanding global market in scale, it added. 

“This has then prompted both companies to take another thorough look at how they should be running their operations in this field,” said the statement.

Following the dissolution of the JV, Mitsui Chemicals will relaunch its activities on 1 Jan 2022, under its ‘polyurethane division, basic materials business sector’.

The Japanese supplier said it is currently working to advance its ‘vision 2030’ long-term business plan, under which it intends to drive business through switching to products that are compatible with circular economy. 

Initiatives to this end will include the adoption of a social issues perspective and the acceleration of structural reform.