The Urethane Blog

MCNS to Dissolve

Mitsui / SKC: PU raw materials joint venture to be terminated

On 30 September 2021, Mitsui Chemicals, Inc. and SKC Co., Ltd. announced plans to dissolve their joint venture agreement for Mitsui Chemicals & SKC Polyurethanes Inc. (MCN), a subsidiary that combines the two parent companies’ operations in polyurethane raw materials.

The two companies established MCNS in July 2015 as a joint venture for their operations in polyurethane raw materials. The partners said they have since endeavoured to maximise synergy in their joint operations here in an effort to capture demand in growth markets, roll out new operations across the globe and improve profitability.

According to the companies, 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 operations in this field. The parties have determined that it would be beneficial for each company to run its own operations in line with its specific strategy, if both companies are to further grow their businesses.

The dissolution is scheduled to occur at the end of December 2021. On 1 January 2022, operations of the Japanese entity MCNS-J will re-launch as the Polyurethane Division, Basic Materials Business Sector, of Mitsui Chemicals. In March 2022, Mitsui will transfer shares in the South Korean entity MCNS to reduce paid-in capital, and the liquidation of MCNS-J will be completed.

Going forward, customers will continue to receive their stable supply of products from either Mitsui or SKC.