SKC to work with Japanese to boost polyurethane business

SKC, a major chemical company under SK Group, said on Monday that it has decided to set up a joint venture with Japan’s Mitsui Chemicals to expand its polyurethane business.

The company said the joint venture will have assets worth $1.1 billion, as well as $1.5 billion in sales in 2015. The company will be located in Korea, according to SKC. The project will also manage the polyurethane business from both companies, with 720,000 tons of production capacity.

Polyurethane is widely used in automobile parts, refrigerators and compound resins. The market is expected to grow 5 to 7 percent annually, SKC said. The Korean company aims to become a worldwide materials producer for specialty chemical products.