Japanese Chemical Maker, Shell to Set Up Joint Venture

Mitsui Toatsu Chemicals, Inc., a major Japanese chemical maker, said it will establish an equally owned venture with Shell International Chemical Co. of Britain to make polyurethane resin raw materials.

The Tokyo-based company said a production base will be established in Spain, Italy or France.

The two companies are scheduled to complete a joint feasibility study in the three countries by the end of this year and the site of a plant will be chosen early next year.

Mitsui said plans call for building a factory that would have annual production capacity of 50,000 tons of diphenyl methane diisocyanate (MDI), raw materials for polyurethane resin.

Demand for MDI is growing sharply because of its widespread application in areas including household electric appliances and automotive parts, the company said.

World MDI production was estimated at 1.3 million tons last year, the company said.