SABIC signs tech licence agreement with Mitsui for TDI, MDI

28 February 2012 08:33  [Source: ICIS news]

SINGAPORE (ICIS)--SABIC has signed a technology licence agreement with Japanese producer Mitsui Chemicals for the production of toluene di-isocyanate (TDI) and methyl di-p phenylene isocyanate (MDI), the Saudi chemicals major said on Tuesday.

The agreement covers joint technology development for TDI and MDI, which are raw materials for the production of polyurethane (PU), SABIC said in a statement.

“Through this technology licence agreement, we will strengthen our product capabilities with high-quality TDI and MDI and expand into the polyurethane business,” said Mohamed Al-Mady, SABIC’s vice chairman and CEO.

“The agreement will spur our strategic business plan to penetrate the global polyurethane market,” he said.

It will also enable the fast development of Saudi Arabia’s PU application industries, especially thermal insulation, which will help to create jobs and reduce energy use, Al-Mady added.

The deal with SABIC, which was signed on 26 February, will be the largest and most extensive licence agreement made by Mitsui Chemicals, according to Toshikazu Tanaka, president and CEO of Mitsui Chemicals.

Financial details of the agreement were not disclosed.

By: Nurluqman Suratman

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