Mitsubishi Rayon (TYO:3404) Plans a JV in Saudi Arabia

Tokyo, Aug 7, 2009 AEST (ABN Newswire) - Japan's Mitsubishi Rayon (TYO:3404) plans to set up a joint venture in Saudi Arabia with major local chemical producer Saudi Basic Industries Corp (Sabic) to produce material used for acrylic glass, a Japanese media reported. The factory is expected to begin operations in 2013.

Acrylic glass is used in various consumer electronics and auto parts and demand for the high performance chemical is improving in some markets such as China.
Mitsubishi Rayon is expected to take a majority stake in the joint venture with spending of more than 50 billion yen on the project.

The factory will boast an annual output capacity of 200,000 to 250,000 tonnes and become one of the largest for producing methyl methacrylates (MMA). The launch of the new Middle Eastern plant is expected to increase Mitsubishi Rayon's MMA output capacity by 15-20 per cent.

Sabic is expected to take a 10-20 per cent stake in Lucite International owned by Mitsubishi Rayon ahead of the establishment of the joint venture.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net