Mitsubishi Chemical Corporation (MCC) has signed a contract with ExxonMobil Chemical Company (EMCC), the chemical division of Exxon Mobil Corporation (EMC), to purchase EMCC's stake in two joint ventures that manufacture and sell polypropylene compounds. Currently owned by both companies, the joint ventures will become wholly-owned subsidiaries of Mitsubishi.
PP compounds are in high demand around the world for automobile components such as bumpers, electrical and mechanical systems and interior trim panels. Demand is strong both inside and outside Japan, with the market for PP compounds for automobiles growing globally at an annual rate of 6%. The MCC group considers the PP business as one of its core business areas and is currently conducting the business chiefly through Japan Polypropylene Corporation (JPP), a joint venture with Chisso Petrochemical Corp. The group has a particularly strong reputation for high-grade products, including materials for automobile use. In order to respond to the increasingly global needs of customers in the automobile industry, MCC group has set up manufacturing and sales operations in Japan, North America, East Asia and China. MCC group's move to wholly acquire the two MYTEX companies will allow it to improve the integration of the automobile PP compound business with the domestic business conducted principally by JPP.
11-May-06 
