The Saudi Basic Industries Corporation (SABIC) and Mitsui Chemicals, Inc. (Mitusi) signed at SABIC’s headquarters in Riyadh, Saudi Arabia, on February 26, a license agreement in Methylene Diisocyanate (MDI) and Tuluene Diisocyanate (TDI) technologies.
In doing so, SABIC intends to cope with it’s strategic plan to extend its global Market Leadership in polyurethane and serve its customers with value-added services, solutions and products.
Under the agreement, Mitsui will provide manufacturing technology for producing TDI and MDI, which are both raw materials for producing polyurethane (PU).
The agreement spearheads a strategic collaboration between the two companies to explore future possibilities to collaborate in the polyurethane business and to penetrate the global polyurethane market in key applications, such as thermal insulation which will contribute to employment creation as well as energy savings.
For Mitsui, this License Agreement will be the largest and most extensive one ever made. Mitsui wishes to establish a strategic supply base for competitive TDI/MDI using low cost raw materials available in the Middle East, and to secure competitive TDI/MDI for its polyurethane downstream business which includes coating materials, engineering materials, and system houses.
Polyurethane is a resilient, flexible and durable manufactured material that can take the place of paint, cotton, rubber, metal or wood in thousands of applications across virtually all fields.
Polyurethane will serve a very rich variety of segments including building and construction, automotive and transportation, furniture and bedding, sports and footwear, food packaging, cold chain and refrigeration, and home appliances. The advantages of polyurethane include strength and flexibility, application versatility, variable rigidity/firmness, and high performance.
