SABIC signs polyurethane technology licence deal with Mitsui
Saudi Basic Industries (SABIC) has entered into a technology licence deal with Mitsui Chemicals as part of its strategic plan to be a global provider of polyurethane (PU).
Under the deal, Mitsui will provide manufacturing technology for producing Toluene diisocyanate (TDI) and Methylene diphenyl diisocyanate (MDI), both used as raw materials for producing PU.
Both companies have also agreed to jointly develop new TDI and MDI technologies as part of the agreement.
SABIC vice chairman and CEO Mohamed Al-Mady said: "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.
"It will also enable a fast development of PU application industries in Saudi Arabia, especially with regards to thermal insulation which will contribute to employment creation as well as energy savings.
"Through this technology license agreement, we will strengthen our product capabilities with high quality TDI and MDI and expand into the polyurethane business."
Mitsui Chemicals president and CEO Toshikazu Tanaka said they will support the project and are committed to its success.
"I hope that it will be just the first step in a future business partnership with SABIC, which may include establishment of a strategic supply base for competitive TDI/MDI," Tanaka said.
PU can be used in various sectors including building and construction, automotive and transportation, furniture and bedding, sports and footwear, food packaging, cold chain and refrigeration, and home appliances.
Image: The European headquarters of SABIC, located in Sittard, Netherlands. Photo:ZanderZ