Mitsui Chemicals and Sanyo Chemicals jointly established a factory to improve the supply stability of polyurethane raw materials in Japan

Mitsui Chemicals and Sanyo Kasei are pleased to announce that the two companies have established a 50-50 limited liability partnership (LLP) on May 15, 2023 to address the (PPG) common issues in production, such as increasing production capacity in the Japan region and securing future supply stability.

PPG is formed by addition polymerization of alkylene oxides such as propylene oxide (PO) and ethylene oxide (EO) with polyols. PPG is one of the main raw materials of polyurethane. Polyurethanes are used in a wide variety of applications, including automotive components, furniture and bedding, insulating building materials, paints and adhesives. The global market for polyurethanes is constantly expanding. In Japan, demand for high-performance, high-value-added polyurethane is expected to grow in response to changes in the market, such as the spread of next-generation automobiles, smart homes, and environmental demands in various applications. However, the demand for generic products will show a downward trend. In addition, in the domestic and foreign markets, the competitive environment with overseas manufacturers is becoming increasingly severe.

Under such circumstances, Mitsui Chemicals and Sanyo Chemicals agreed that it is necessary to cooperate with partners who share the same understanding in order to maintain a sustainable and efficient production system and enhance the strength of PPG's business strategy. Competitiveness. By establishing this limited liability company, the two companies will strive to achieve a continuous and stable supply of the PPG business and ensure the profitability of the business.

Overview of the joint venture

Name: Japan Polyol LLP

Office address: 2-2-1, Yaesu, Chuo-ku, Tokyo (in Mitsui Chemicals head office).

Investment amount: 1 million yen

Investment ratio: Mitsui Chemicals 50%, Sanyo Chemical 50%.

Date of establishment:May 15, 2023

Executive Director:

General Manager of Polyurethane Business, Mitsui Chemicals Fundamental and Green Materials Division

General Manager of Sanyocheng Polyurethane Material Division.

Business: The two companies have business cooperation in PPG production

(1) Production cooperation

Rationalization of production (interchange, production outsourcing) by mutual use of the production bases of both parties