Mitsubishi acquires 10% stake in aromatics JV

Mitsubishi Corp. (a unit of Mitsubishi Chemical Holdings Corp.) will join a 70 billion yen (USs$622 million) joint venture established last year by Mitsubishi Chemical Corp. and Japan Energy Corp. to supply condensate and help distribute products. This will be through the acquisition of 10% of Kashima Aromatics Co. from Japan Energy, the oil refining unit of Nippon Mining Holding (currently holding 90% in the JV). Mitsubishi Chemical's equity stake will remain at 10%. Kashima Aromatics plans to build units including a 60,000 bpd condensate splitter and mainly use condensate as feedstock. Commencing operations January 2008, the plant will produce 850,000 kilolitres of light naphtha pa, 420,000 tpa of paraxylene and 190,000 tpa of benzene. Feedstock will be supplied by Mitsubishi Corp. Kashima Aromatics' condensate splitter will be the second such unit to be built in Japan, and it is unlike majority of those that rely on light naphtha for 95% of feedstock materials.