Page 45 - Plastics News March 2017

BUSINESS NEWS

Mitsui Chemicals & SKC Polyurethanes to set up facility in

Andhra Pradesh

itsui Chemicals & SKC Polyurethanes Co Ltd (MCNS) - a able to further develop its polyurethane business in India.
M50:50 joint venture of Japan’s Mitsui Chemicals Inc MCNS manufactures and sells urethane materials for wide
and South Korea’s SKC Co Ltd - will establish a polyurethane applications including refrigerator insulation materials. In
system house, to be named MCNS Polyurethanes India the automotive field, not only is MCNS the largest supplier
Pvt Ltd, in Andhra Pradesh with initial investment of $ of polyurethane materials for interior use to Japanese
7.3 million (about Rs 49 crore). System house provides and Korean makers, it is the only manufacturer in the
premium services, such as the adjustment of polyurethane world to commercially supply bio-polyols derived from
foam material formulations - including those derived non-edible plants.
frompolyol - to cater to individual customer needs. The
facility, to be located at Sri City (Nellore district, AP), Saudi Aramco inks $7 billion deal
will manufacture polyurethane system products and for Malaysian oil venture
have capacity of 13,000 tonnes per annum (TPA). The
facility is expected to start commercial operations in il major Saudi Aramco has signed a $7 billion deal
January 2018. Polyurethane products are widely used in oto take a 50 percent stake in a mega Malaysian
industries such as automotive, building & construction, oil refinery project, in a pact expected to help Saudi
consumer durables, Arabia increase trade in Southeast Asia. Aramco
textiles & fibres, etc. has signed the agreement with Malaysia’s national
With a population oil company Petronas, which is developing the $27
estimated at 1.3 billion project plant in southern Johor state bordering
billion people, India Singapore. It includes
is the world’s seventh a refinery with the
largest economic capacity to churn out
power in GDP terms, 300,000 barrels of oil
with annual economic a day, a cracker plant
growth of 7 percent or higher expected. The demand and a petrochemical
for polyurethane is expected to increase in the country, complex with an
which produces 4 million cars and 9 million refrigerators annual production
annually.Many Japanese and Korean auto and home capacity of 7.7 million
appliance manufacturers have developed a presence in metric tons. Officials have said the deal will make
the country, especially in Southern India, and MCNS is Aramco the single largest investor in Malaysia. Saudi
aiming to tap into this business opportunity by reliably Arabia is the world’s largest oil exporter, with much
supplying high-quality polyurethane system products with of its crude destined for customers in Asia. Saudi’s
the new system house. MCNS, through its joint venture Energy Minister Khalid Al-Falih said the Malaysian deal
Vithal Castor Polyols Pvt Ltd (VCP), already has a facility will help expand Aramco’s portfolio ahead of its initial
to manufacture bio-polyol (which is derived from plant public offering next year, which is touted to become
sources) in India at Jhagadia, Gujarat. VCP is a joint the world’s largest share sale. Petronas chief Wan
venture between MCNS, Itoh oil Chemical Co Ltd and Zulkiflee Wan Ariffin hailed it as a “historic moment
India's Jayant Agro-organics Ltd. opened in February last for the industry” for two national oil companies to
year, the plant, which has a capacity of 8,000 tonne per tie-up for a mammoth greenfield project. The signing
annum, manufactures bio-polyol using Indian castor oil of the agreement was witnessed by Saudi King Salman,
from non-edible plants as a main raw material. With the who arrived here Sunday with an entourage of 600 on
establishment of the system house in AP, MCNS will be a multi-nation tour to boost economic ties with Asia.

45 March 2017 | Plastics News