SABIC inks deal with Matsui for plastics industry
Deal covers development of core ingredients for plastics production
Saudi Basic Industries (SABIC) has signed an agreement with Japanese industrial giant Mitsui Chemicals that will see the KSA company produce two core ingredients for polyurethane production.
The two ingredients, TDI and MDI, are used in the production of elastomers, solid polyurethanes, micro cellular foams and high density foams – and can be found in everything from thermal insulation of buildings, refrigerators, deep freeze equipment, pipelines and storage tanks; to shoe soles, vehicle body panels and rollers and gear wheels.
Under the agreement, Mitsui will provide manufacturing technology for producing TDI and MDI, which are both raw materials for producing polyurethane. The agreement also provides for joint technology development in TDI/MDI.
The agreement was signed by Mohamed Al-Mady, SABIC Vice Chairman and CEO, and Toshikazu Tanaka, Mitsui Chemicals President and CEO, at SABIC’s headquarters in Riyadh.
“The agreement will spur our strategic business plan to penetrate the global polyurethane market as well as power the ambition and competitive advantage of our customers for the long term,” Al-Mady said.
Al-Mady said that Mitsui Chemicals has a long experience as a manufacturer of TDI and MDI and has over the years developed pioneering manufacturing processes.
“Through this technology license agreement, we will strengthen our product capabilities with high quality TDI and MDI and expand into the polyurethane business,” he said.