Mitsui Chemicals, Inc., and SKC Co., Ltd., announced plans to dissolve their joint venture agreement for Mitsui Chemicals & SKC Polyurethanes Inc., a subsidiary that combines the two parent companies’ operations in polyurethane raw materials.
Mitsui Chemicals, based on its vision 2030 long-term business plan, will operate the polyurethane raw material business in accordance with the structural reform policy of the basic materials business sector.
Even after the dissolution of this alliance, Mitsui Chemicals and SKC will continue to cooperate to the extent necessary based on the good relationship they have had so far.
Reason for Dissolution of the Partnership
Over the period of partnership, discrepancies have started to arise between Mitsui Chemicals’ policy of steadily improving earnings through the likes of high-performance products and bio- products and SKC’s policy of quickly expanding global market in scale. This has then prompted both companies to take another thorough look at how they should be running their co-operations in this field.
Since its establishment, MCNS has leaned on both Mitsui Chemicals’ and SKC’s business strengths to steadily grow its earnings. But now it has been determined that if both companies are to further develop and grow their businesses here, it would be beneficial for each party to run its own operations in line with its specific strategy. The decision to dissolve the current partnership then followed from this.
Future Strategy of Mitsui Chemicals’ PU Business
The future goals for the basic materials business sector, which will include the polyurethane division, are to pursue business portfolio transformation and switch over to products compatible with a circular economy. Initiatives to this end will include the adoption of a social issues perspective and the acceleration of structural reform.
Source: Mitsui Chemicals