Home / Knowledge / News / Textiles / Mizushima naphtha crackers to start-up in April 2011
Mizushima naphtha crackers to start-up in April 2011
04
Jun '10
Asahi Kasei and Mitsubishi Chemical Holdings today signed a memorandum of understanding to establish a joint-venture company for the integration and unification of their basic petrochemicals operations in Mizushima with the start-up of unified operation of the respective naphtha crackers in April 1, 2011.

This understanding is the result of an extensive study on the unification of the naphtha cracker operations of Asahi Kasei Chemicals Corp. (subsidiary of Asahi Kasei Corp., hereafter collectively “Asahi Kasei”) located in Mizushima and the naphtha cracker operations of Mitsubishi Chemical Corp. (subsidiary of Mitsubishi Chemical Holdings Corp., hereafter collectively “Mitsubishi Chemical”) located in Mizushima. The parties will now advance discussions to finalize the specifics as required for the scheduled integration and unification.

Operational context
The operating climate for the Japanese petrochemical industry is forecasted to become increasingly severe due to declining domestic demand, expansions of large-scale production facilities in the Middle East, and increasing supply capacity in China. With a shared recognition of the difficulty in sustaining operations under the current configuration, Asahi Kasei and Mitsubishi Chemical performed their study based on a determination of the need to unify their naphtha crackers in the Mizushima industrial zone of Kurashiki, Okayama, Japan, and to establish an optimum, efficient configuration for production and management in order to further strengthen competitiveness and secure profitability.

Under the new configuration of a joint-venture company integrating and unifying basic petrochemicals operations in Mizushima in accordance with today's memorandum, in addition to optimizing the basic petrochemicals production configuration with timely response to changes in the business environment, the parties will also make every effort to further strengthen the Mizushima industrial zone including through alliances with oil refineries.

Outline of the joint-venture company

Start-up: April 1, 2011
Investment ratio: Asahi Kasei Chemicals Corp. – 50%, Mitsubishi Chemical Corp. – 50%
Products: Ethylene, propylene, benzene, and by-products such as C4, C5, hydrogen, C9, and heavy fractions
Operations: The following as performed in Mizushima

• Procurement of feedstocks such as naphtha, liquefied petroleum gas, kerosene, and light oil as well as utilities for production of basic petrochemicals
• Production of basic petrochemicals
• Sales of basic petrochemicals and utilities to Asahi Kasei Chemicals Corp. and Mitsubishi Chemical Corp.
• Procurement of basic petrochemicals in shortfall
• Rationalization of basic petrochemicals operations, formulation and implementation of concrete measures to heighten efficiency

Specifics such as the company name, representatives, paid-in capital, and corporate form are yet to be determined.

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 29th Apr 2017

EU rules needed to curb textile worker exploitation: MEPs

European Union (EU) rules are needed to oblige textile and clothing...

Apparel/Garments | On 29th Apr 2017

US retail operating growth to be 1.5-2.5% in 2017: Moody's

The forecast for operating income growth in the US over the next 12...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X