Mitsui Chemicals and Sinopec Reach Fundamental Agreement on
Collaboration in Phenol and EPT
November 2, 2009
Mitsui Chemicals, Inc.
China Petroleum & Chemical Corp.
Mitsui Chemicals, Inc. (hereinafter referred to as “MCI”) with its Head Office in Tokyo, Japan (Toshikazu Tanaka, President & CEO) and China Petroleum & Chemical Corp. (hereinafter referred to as “Sinopec”) with its head office in Beijing, China (Wang Tianpu, President）commenced their relationship with the export of MCI’s urethane material technology to Sinopec in 1986. In 1993, the two companies formed a joint venture company to sell urethane materials and resins. The two companies signed an equal investment joint-venture agreement in April 2006 to form the joint venture Shanghai Sinopec Mitsui Chemicals Co., Ltd. to produce and sell Bisphenol A (BPA) in China. The company currently produces 120,000 tons of BPA per year (January 2009 figures).
MCI and Sinopec have continued to foster their alliance over the past two decades and on April 15, 2009, the two companies signed a Memorandum of Understanding agreeing to strengthen collaboration in phenols and petrochemical derivatives by undertaking feasibility studies. The memorandum also provided for studies in forming operations of performance materials, such as EPT (ethylene, propylene, ethylene-propylene-diene terpolymer)*.
MCI and Sinopec announced today that they have reached a fundamental agreement with regard to phenols and EPT. The investments for the two operations are expected to be in the vicinity of 60 billion yen.
MCI and Sinopec will continue to study collaboration feasibility in petrochemical development which will serve to strengthen the relationship of the two companies.
- EPT, which has good resistance to heat/cold, UV rays, and chemicals, in addition to good electric insulation and other superior properties, is widely used in automotive parts, electric cables, and in other industrial materials.
China Petroleum & Chemical Corp. (Sinopec Corp.)
- Main business: Oil and gas mining business, oil refinery business (gasoline, diesel and other fuels, lubricant, solvent, WAX, and petrochemical feedstock), Chemical business (olefin, synthetic resin and rubbers, synthetic fiber feedstock, synthetic fiber, and urea), and Engineering business (oil and gas mining, oil refining and chemical plants)
- Net sales in 2008: RMB 1,452.1 billion
- Capital stock: 18.6 billion dollars (listed on the stock exchanges of NY, London, and HK)
- Number of employees: 420,000 persons
- Head Office: 22 Chaoyangmen North Street, Chaoyang District Beijing, China
Mitsui Chemicals, Inc.
- Main business: Performance Materials (Automotive & Industrial Materials, Living & Energy Materials, Information & Electronics Materials, Polyurethane, Coatings & Engineering Materials), Advanced Chemicals (Fine & Performance Chemicals, Agrochemicals), Basic Chemicals (Feedstock, Phenols, PTA & PET, Industrial Chemicals)
- Net sales for FY2008: ¥1,487.6 billion
- Paid-in capital: ¥103,226 million
- Number of employees: 12,964 persons (consolidated)
- Head Office: Shiodome City Center, 1-5-2, Higashi-Shimbashi, Minato-ku, Tokyo, Japan