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MCC to strengthen polypropylene (PP) compound production
Sep '08
Mitsubishi Chemical Corporation, through its subsidiary, Japan Polypropylene Corporation, has formed a business alliance agreement with Borealis AG (“Borealis”; Head office: Vienna, Austria; CEO: Mark Garrett), a leading supplier of innovative value creating plastics solutions, to strengthen polypropylene (PP) compound production and supply for the automotive industry in the US and Europe.

This agreement will enable both companies to meet global demands and enhance the competitiveness of customers through localized production and supply of high-quality and high-performance PP compound materials.

High-performance PP compound materials are widely used in the production of automotive components including bumper fascias, instrument panels, door trim panels, and other exterior and interior applications, to meet the manufacturing performance, weight-saving and fuel reduction qualities demanded by today's global automotive manufacturers.

In Europe, Borealis will use its proprietary BorstarR technology to produce high-performance specialty PP compounds in accordance with a recipe specified by Mitsubishi Chemical Europe GmbH, an overseas subsidiary of MCC, which is licensed by JPP. Therefore, the production and supply agreement for PP compounds in Europe has been signed by MCE and Borealis.

To the contrary, in the US, Mytex Polymers US Corporation (“MPUS”), a wholly-owned subsidiary of MCC through Japan Polychem Corporation will produce PP compounds in accordance with a recipe specified by Borealis Compounds, LLC (“BUS”), a wholly-owned subsidiary of Borealis. Therefore, the production and supply agreement for PP compounds in the US has been signed by MPUS and BUS.

Both MCC Group and Borealis Group are well established in the global automotive industry in several regions. MCC Group has PP compound production facilities in Japan, the US, China, Thailand (under construction), and India (under construction), and Borealis Group has PP compound production facilities in EU countries and Brazil (through joint ventures between Borealis and Braskem S.A.).

According to Masahiro Abe, JPP President, “The co-operation with Borealis will be on a long-term basis to further improve our ability to fulfill our customer's demand for PP and will consolidate our position as a global supplier to the European automotive sector”.

Mark Garrett, Borealis CEO states: “We are excited to be working with JPP in a way that brings us even closer to our international automotive customers. Automotive OEMs produce vehicles on global platforms. As material producers we must therefore have capacity to supply high-quality and high-performance PP compounds and provide best-in-class service to customers globally”.

MCC Group expects to further strengthen PP compound supply for automotive industry worldwide through this agreement.

Mitsubishi Chemical Corporation

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