Mitsui-Takeda plans PU expansion in China

13-Sep-05

To take advantage of the rapidly growing demand for polyurethane (PU) in China, Mitsui Takeda Chemicals, Inc. along with its current joint venture partners has planned expansion of Tianjin Cosmo Polyurethane Co. Ltd. (TCPC). MTCI plans to convert TCPC into a consolidated subsidiary by increasing its stake in TCPC and constructing PU resin production facilities in TCPC. MTCI's current 45% stake will increase to 70% and original capital of 30 million yuan will be increased to 90 million yuan. The new facilities are to be constructed at TCPC's existing site and will start commercial operation in July 2006. The plant is to have a capacity of 17,000 tpa for the main application of PU resins for coatings, paints, and flexible packaging adhesives. MTCI is a joint venture company between Mitsui Chemicals, Inc. (MCI) and Takeda Chemical Industries, Ltd. (Takeda), and is engaged in the manufacture, sales and research of PU raw materials, PU resins and organic acids. The strategy of PU resin business as one of Functional Polymers is to push ahead with further expansion the businesses through capturing the high-growth demand in Asia and expanding new products contributing to environmental preservation. TCPC currently manufactures and sells PPG compound (Resin premix), in addition to importing TDI and MDI from Japan.