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Home> News Releases> 2013> Mitsui and Idemitsu Kosan to sign a basic agreement to commence study on Alpha Olefins production in the United States

News Releases: 2013

Mitsui and Idemitsu Kosan to sign a basic agreement to commence study on Alpha Olefins production in the United States

Mar. 18, 2013

Mitsui & Co., Ltd.
Idemitsu Kosan Co., Ltd.

Mitsui & Co., Ltd. ("Mitsui," Head Office: Tokyo, President and CEO: Masami Iijima) and Idemitsu Kosan Co., Ltd. ("Idemitsu," head office: Tokyo, President: Kazuhisa Nakano) have signed a basic agreement to commence studies through the establishment of a 50-50 joint venture in the United States to produce Linear Alpha Olefins with a newly built world-scale unit. Mitsui and Idemitsu have also reached initial agreement with The Dow Chemical Company of the United States ("Dow," head office: Midland, Michigan) concerning the procurement of feedstocks for the production of alpha olefins and the supply of a part of its production. Final investment decision is expected to be made by Mitsui and Idemitsu in 2014.

The project is driven by the shale gas/oil revolution in the United States where sustainable cost advantage is expected. Mitsui and Idemitsu will set forward this overseas project through creation of an alliance formed by Japanese companies to produce functional chemicals by applying the integrated strengths of both companies, including Idemitsu's technical expertise in the field of alpha olefins, Mitsui's partnerships with overseas companies capable of supplying cost-advantaged feedstocks, and both companies' marketing capabilities. The joint venture will secure access to producer cost-based ethylene from Dow's U.S. Gulf Coast production grid and by forming a partnership with Dow. The schedule calls for the commencement of alpha olefin production in 2016 with an annual output of 330,000 tons. Part of this output will be utilized by Dow, supporting the stable operation of the alpha olefins unit.

Alpha olefins are used as additives in polyethylene and other synthetic resins. They are also widely used in products ranging from detergents to high-performance lubricants and paper-making chemicals. World demand is in excess of 3 million tons and is expected to remain on a steady growth trend. By ensuring the stable growth of this business, Mitsui and Idemitsu will contribute to the growth of a wide range of industries that use alpha olefins.

Alpha Olefins Unit

1. Production Capacity 330,000 tons/year (planned)
2. Location not decided
3. Total Investment Amount not decided
4. Future Schedule 2014 Final investment decision (scheduled)
2016 operation start (scheduled)


Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

For inquiries on this matter, please contact

  • Mitsui & Co., Ltd.
    Corporate Communications Division
    Yuichiro Sera
    Telephone: +81-3-3285-7562
    Facsimile: +81-3-3285-9819

  • Idemitsu Kosan Co., Ltd.
    Public Relations Section
    Public Relations & CSR Affairs Office
    Kei Uchikawa
    Telephone: +81-3-3213-3115
    Facsimile: +81-3-3213-3049

The information contained in this news release is true and accurate at the time of publication; however, it may be subject to change without prior notice.

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