<article><p class="lead">Japanese petrochemical producer Mitsubishi Chemical plans to acquire all stakes in overseas polypropylene (PP) compound producing subsidiaries of its joint venture Japan Polypropylene by the beginning of July, to reinforce its PP compound business.</p><p>Mitsubishi Chemical will obtain entire stakes in the Japan Polypropylene's subsidiaries in the US, Mexico, India and Jiangsu in eastern China. Mitsubishi Chemical will also acquire 55pc and 50pc shares in the subsidiaries in northeast China's Beijing and in Thailand, respectively.</p><p>Mitsubishi Chemical targets to take advantage of growing PP compound demand by combining its resources with Japan Polypropylene's technologies. Demand for PP compound is increasing as it is a light material used to produce electric vehicles.</p><p>The rest of Japan Polypropylene's Beijing subsidiary will be held 40pc by China's PP compound supplier Beijing Ju-Ling-Yan Plastic and 5pc by Japanese trading house Toyota Tsusho. The remaining 50pc in the <a href="https://direct.argusmedia.com/newsandanalysis/article/2128709">Thailand subsidiary</a> will be kept by Rayong-based refiner IRPC.</p><p>Japan Polypropylene is owned 65pc by Mitsubishi Chemical and 35pc by JNC Petrochemical, a wholly-owned subsidiary of Japanese chemical producer JNC. Japan Polypropylene has 219,000 t/yr of PP compound production capacity overseas and 1mn t/yr in Japan, and is unaffected by the acquisition.</p><p>Japan produced 2.3mn t of PP in 2020, down by 8pc from 2019, according to the Japan petrochemical industry association.</p><p class="bylines">By Nanami Oki</p></article>
