Mitsubishi Rayon to build plant in Saudi Arabia
Tokyo, August 7, 2009
Japan's Mitsubishi Rayon plans to set up a joint venture with Saudi Basic Industries Corp (Sabic) to produce material used for acrylic glass in Saudi Arabia, the Nikkei business daily reported on Friday.
Acrylic glass is used in various consumer electronics and auto parts, and demand for its resin, methyl methacrylate monomer, has been recovering, partly helped by Chinese stimulus measures.
Mitsubishi Rayon, which is likely to take a majority stake in the joint venture, is expected to spend more than 50 billion yen ($524.1 million) on the project to build a factory that will start operating in 2013, the Nikkei said.
With an annual output capacity of 200,000 to 250,000 tonnes, the factory is expected to become one of the largest for producing methyl methacrylate, the paper said.
Prior to the establishment of the joint venture, Sabic is expected to take a 10-20 per cent stake in Lucite International.
Mitsubishi Rayon bought the British chemical maker for $1.6 billion in May.
In a statement, Mitsubishi Rayon said the report was not based on something it had announced and that it had not made such a decision.
Shares of Mitsubishi Rayon rose 3.1 per cent to 266 yen, outperforming a 0.6 per cent fall in the benchmark Nikkei average. – Reuters