Mitsui Chemicals plans TPO compounding unit in Germany

Tokyo -- Mitsui Chemicals Inc. has agreed with German polymer compounder Polymer-Chemie, to establish a 50-50 joint-venture company to make TPO compounds under the Milastomer and Admer names. Construction will begin in January 2006, and the capacity will be 15 kt/year initially, doubling in size by 2011.

The company will be called Sun Alloys Europe GmbH, and will be based in Polymer-Chemie's plant at Bad Sobernheim, about 100km southwest of Frankfurt). It will have a capital of Euro 2 million.

Mitsui said in a statement, "Milastomer and Admer are compounded with additives to achieve properties required by MCI's customers. These products are used in automotive parts, construction and food packaging materials. Currently, the company has production sites of these two products in three regions worldwide, Japan, the US, and Europe. However, in order to cope with an anticipating surge in demand in Europe, MCI decided it is necessary for the company to reinforce a manufacturing base and form a joint venture with a major compounder in Germany."