Mitsui Chemicals, Inc. and Teijin Limited, both Japanese chemical companies, announced earlier this month a basic agreement
to form a joint-venture company that will integrate their domestic PET (polyethylene-terephthalate) resin for bottles operations.
The new company will optimize the synergistic effects of integrating their PET resin operations from supply chains to production, reinforce operational competitiveness, improve quality and cost competitiveness and enable innovative solutions to better meet customer needs and maximize overall corporate value.
The domestic PET resin market has become increasingly competitive due to decreased demand for bottled beverages and growing imports of PET resin for bottles from other Asian countries. To respond to these tightening conditions, MCI and Teijin have been studying the potential advantages of integrating their PET resin operations and capitalizing on synergistic effects ranging from research and development to production and sales.
MCI has various PET-related operations, including the production of purified terephthalic acid (PTA), while Teijin produces paraxylene (PX), a raw material used in the production of PTA, as well as produces PET resin for bottles for distribution by Teijin Chemicals Ltd.
Under the newly announced agreement, the joint-venture company will integrate production, marketing and sales, and production technology. In particular, it will reinforce the total supply chain for PX and PTA production.
The merger will provide MCI with stable, competitively priced supplies of PX and create a stable domestic purchaser for Teijin＊s PX.
The two companies will continue to pursue opportunities to maximize the synergistic effects of their collaboration and strengthen the cost advantages of their PET resin for bottles for enhanced corporate value and business sustainability.
Source : www.adsalecprj.com