Mitsui & Co., Ltd. ("Mitsui") has entered into a definitive agreement with The Dow Chemical Company ("Dow") to acquire a 50% stake in Dow's 100% subsidiary Santa Vitória Açúcar e Álcool Ltda ("SVAA") and form a joint venture aimed at the production of biopolymers made from renewable, sugarcane-derived ethanol in Brazil.
Mitsui focuses on the diversification of chemical feeds from not only conventional fossil fuels such as crude oil, and natural gas but also from unconventional resources and has been promoting biomass-derived chemicals business (green chemicals business). In green chemicals business, Mitsui's goal is to contribute to industry and society by securing a stable supply of renewable resources as well as by producing low environmental impact chemicals from those resources.
Mitsui and Dow, who share a strategic business interest in biomass-derived chemicals and biopolymers in the growing Brazilian market, have reached an agreement on forming the joint venture.
Mitsui expects the joint venture to enhance further development of important opportunities in securing sugar cane based resources for Mitsui's green chemical business. Furthermore, Mitsui envisages developing biomass derived chemicals and biopolymers business through alliances with potential partners such as Dow with advanced technologies to utilize sugar cane based resources to create further value.
Through participation in SVAA, which is the second joint venture with Dow after chlor-alkali production in the US, Mitsui expects to strengthen its strategic partnership and alliance with Dow and continue to strive for new business opportunities.
Outline of SVAA
||Santa Vitória Açúcar e Álcool Ltda
||Santa Vitória, Minas Gerais, Brazil
||Operation of sugarcane field, production and sales of bio-ethanol.
Production and sales of bio-ethylene, bio-polyethylene and sugarcane derived chemicals (to be expanded).
|Mitsui's Initial Investment
This project is expected to have only a negligible effect on the consolidated business results for the current period.
Profile of Dow
||The Dow Chemical Company
||Andrew Liveris, Chairman & CEO
|Location of HQ
||Midland, Michigan, USA
|Stock Exchange Listing
||Manufacturing and marketing of plastics, chemicals and agricultural products
|Consolidated net sales*
|Consolidated total asset*
*As of December 2010
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