Dec 28 2005
Mitsui Chemicals, Inc. (MCI) will combine two subsidiaries in Singapore on January 1, 2006 to form a new company MITSUI PHENOLS SINGAPORE PTE. LTD. This step reflects MCI’s efforts to reinforce its phenol business by integrating operations. One subsidiary is MITSUI PHENOL SINGAPORE PTE. LTD. , a manufacturer and marketer of phenol and acetone that is 90% owned by MCI and 10% owned by Mitsui & Co., Ltd. The other company is wholly owned subsidiary MITSUI BISPHENOL SINGAPORE PTE LTD. , a manufacturer and marketer of bisphenol A.
MCI is currently implementing a medium-term business plan that aims to grow and expand operations involving performance materials and improve the profitability of operations involving petrochemicals and basic chemicals. This merger is intended to increase earnings in phenol chain, which is the core business of MCI’s basic chemicals business.
Demand for phenol resin, polycarbonate resin, epoxy resin and solvent is growing in Asia, chiefly for use in the residential construction and electronic materials. As a result, annual growth of about 10% is expected to continue for phenol, acetone and bisphenol A, the raw materials used to make these resins and solvent. The integration of the two Singapore subsidiaries will give MCI a more efficient operating framework for its phenol chain, making its products even more cost competitive as demand continues to climb.