TOKYO, March 13, 2013 _ Ube Industries, Ltd. today announced that it has established a joint venture with LOTTE CHEMICAL CORPORATION, Lotte Chemical Titan Holding Sdn. Bhd., and Mitsubishi Corporation to manufacture and market butadiene rubber (BR) in Johor, Malaysia. The move is in response to growing demand for BR in the Asia region.
The joint venture will be licensed manufacturing technology from Ube Industries, and will construct manufacturing facilities capable of producing 50,000 tonnes of BR annually. Lotte Chemical Titan Holding of the LOTTE CHEMICAL Group will supply the joint venture with raw material butadiene, with manufacturing scheduled to start in 2014. In addition, the joint venture has plans to add a further 22,000 tonnes of annual production capacity as demand dictates.
The main applications for BR are for use in tires, high impact polystyrene (HIPS), and shoe soles. Demand for BR is expected to grow by some 6-7% in the future, centering on the Asian market which is the biggest market for BR. In the tire market, many BR users centering on major tire manufacturers are moving ahead with plans to increase their production capacity in the Asia region.
Ube Industries maintains a global framework for BR production with plants in Japan, China, and Thailand. The annual production capacity in Chiba, Japan currently stands at 110,000 tonnes, with a capacity of 72,000 tonnes in Thailand and China respectively for a total capacity of 254,000 tonnes annually. Ube Industries also plans to add a further 16,000 tonnes of production capacity in Chiba, Japan in late 2013.
LOTTE CHEMICAL maintains its own global framework for BD production with two plants in South Korea (Daesan and Yeosu) having an annual production capacity of 150,000 tonnes each, and a Group plant in Malaysia operated by Lotte Chemical Titan Holding with an annual production capacity of 100,000 tonnes.
The establishment of the joint venture will enable Ube Industries to fully leverage the capacities at four global bases of production, as the company seeks to further strengthen its presence in the growing Asian market.
| Company Name | Malaysian Synthetic Rubber Sdn. Bhd. |
|---|---|
| Location | Pasir Gudang, Johor, Malaysia |
| Capital Stock | MR184 million (approx. ¥5.8 billion) |
| Shareholders | LOTTE CHEMICAL CORPORATION(40%), Lotte Chemical Titan Holding Sdn. Bhd.(10%), Ube Industries, Ltd.(40%), Mitsubishi Corporation(10%) |
| Established | March 2013 |
| President | Ki Young Hwang |
| No. of Employees | 84 (projected) |
| Company Name | LOTTE CHEMICAL CORPORATION |
|---|---|
| Location | Seoul, South Korea |
| Capital Stock | KRW 171 billion |
| Net Sales | KRW 8,464 billion (2011) |
| Shareholders | Lotte(31.27%), Hotel Lotte Co.(12.68%), Lotte Co.(Japan) (9.3%), others(46.75%) |
| Established | March 1976 |
| Company Name | Lotte Chemical Titan Holding Sdn. Bhd. |
|---|---|
| Location | Kuala Lumpur, Malaysia |
| Capital Stock | USD 576 million |
| Net Sales | USD 2,618 million (2012) |
| Shareholders | LOTTE CHEMICAL CORPORATION (100%) |
| Established | February 1989 |
The production facilities for synthetic Rubber of Thai Synthetic Rubbers Co., Ltd.
