Polyurethane Chemical Manufacturer Mitsui Chemicals & SKC Polyurethanes Ltd., a joint venture between South Korea's SKC and Mitsui Chemicals, Ltd. The company is considering expanding its production capacity until 2020 due to strong market demand for its products Doubled sales to 200 billion won ($ 1.86 billion) each year.
MCNS said on Tuesday that its operating profit for the year is expected to more than double to 76 billion won from the previous year, while sales will reach 1,100 billion won.Inspired by outstanding performance, the company plans to increase annual sales by 2020 To 200 billion won, and is examining plans to increase production lines in South Korea and Japan.
As part of its expansion plan, MCNS also plans to double the current number of polyurethane production bases from the current 10 and upgrade 5 of them to a smart factory that will be operated by artificial intelligence.
Due to the synergies brought by the integration of the mainstream product lines of the two companies, the joint venture between South Korea-Japan joint venture, which was jointly invested by South Korea's large petrochemical company SKC and Mitsui Chemicals in Japan, has seen rapid growth in sales and profits.
Prior to the establishment of the joint venture, SKC produced only large quantities of polyurethane raw materials, polyols and propylene oxide, without isocyanates. In contrast, Mitsui Chemicals produced only polyols and isocyanates without propylene oxide. With the establishment of the joint venture, the two companies, from South Korea and Japan Leading petrochemical companies produce all three core raw materials for polyurethane and respond immediately to the rapidly changing needs of the global chemicals market.
Market analysts believe that the joint venture is a great win-win partnership between the two companies, enabling them to achieve vertical and horizontal integration in the production line.