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Mitsui & Co. ,Ltd.("Mitsui," head office: Chiyoda-ku, Tokyo, President: Masami Iijima) has entered into an agreement to form a new Joint Venture Company ("JVC") to conduct a feasibility study of the construction of Chlorinated Polyvinyl Chloride ("CPVC") production facility in Dahej, Gujarat, India with Kaneka Corporation ("Kaneka") and Meghmani Organics Limited ("MOL"). The project is aimed to accelerate development of CPVC business in India.
JVC is scheduled to start manufacturing in 2014 with an initial annual production capacity of 20,000 MT. CPVC is being used as the raw material for hot water pipes, Fire Sprinkler pipes, industrial pipes etc, and its demand has been growing globally. Especially in India, Galvanized Iron piping has been replaced by CPVC piping in these fields, so that it is expected to be scaled up in the relatively early stages of production. Total investment amount including the one to be scaled up in relatively early stages of production will be around US$ 120 million.
Mitsui has been cultivating CPVC business in India for years together with Kaneka and been participating in this project from the stage to find out the appropriate local partner for this project. After company formation of JVC, Mitsui will handle raw material PVC procurement globally and will play a key role in CPVC sales and marketing as well.
Kaneka has been developing CPVC business in Japan, USA and other Asian countries for years, and has CPVC plants both in Japan and in USA (Kaneka Texas Corporation since 2008) with its total global capacity reaching 46,000 MT per year.
MOL was established in 1986 and a manufacturer of Agrichemicals, Pigment and Other speciality chemical products. MOL operates an electrolysis plant named Meghmani Finechem Limited (MFL) in Dahej, Gujarat. JVC will produce CPVC by using the chlorine produced by MFL and PVC procured by Mitsui.
|Name||Trience Speciality Chemicals Pvt.Ltd.|
|Establishment||December, 2012 (scheduled)|
|Representative||Hitoshi Araki (Mitsui), Isao Otsu(Kaneka), Jayanti M. Patel (MOL)|
|Capital||100 million rupees (around 159 million yen)|
|Investment ratio||Mitsui 20%, Kaneka 41%, MOL 39%|
|Business activity||Manufacturing and sales of CPVC resin|
|Name||Meghmani Organics Limited|
|Representative||J. Patel, A.Soparkar|
|Capital||250 million rupees (around 398 million yen)|
|Business activity||Manufacturing and sales of Pesticides, Pigments, and Speciality chemicals|
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 available to 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.
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