UK's Lucite to be acquired by Japan's Mitsubishi Rayon

12-Nov-08

Japan's Mitsubishi Rayon Co. Ltd., East Asia's leading producer of methyl methacrylate (MMA), has agreed to acquire UK's Lucite International Group Limited, a leading global manufacturer of methyl methacrylate (MMA) for approximately US$1.6 bln (including refinancing of outstanding borrowings). The acquisition will make Mitsubishi Rayon a leader in the field of MMA monomer production, and it constitutes the first step in expanding the Company's core business, which has a high priority under the current middle-term plan. Mitsubishi Rayon is a pioneer of the C4 direct oxidation process of MMA production, while Lucite is a pioneer of the ACH method and the ethylene-based Alpha process. Currently, Lucite holds a leadership position in the field of MMA monomer production, and owns a proprietary MMA monomer production method, known as the new ethylene process (Alpha technology). The UK Company has also invested in the development of this exciting new technology and a new Alpha plant in Singapore expected to commence by end of this business year. As a result, the acquisition of Lucite will thus bring into being a single company possessing a wide array of leading MMA monomer production technologies. The agreement will allow Mitsubishi Rayon new facilities in Europe and North America in addition to existing East Asian plants, thereby realizing production capabilities on three continents and expanding into emerging markets like East Europe, Russia, South American and others. Mitsubishi Rayon is a pioneer of the C4 direct oxidation process of MMA production, while Lucite is a pioneer of the ACH method and the ethylene-based Alpha process.