12 November 2012 10:19 [Source: ICIS news]
TOKYO (ICIS)--Five Japanese chemical companies have reached an agreement on the restructuring of their joint ventures, Kashina Chlorine & Alkali and Kashima Vinyl Chloride Monomer (Kashima VCM), the companies said in a joint statement on Monday.
The five companies are Shin-Etsu Chemical, Mitsubishi Chemical, Asahi Glass, Adeka and Kaneka.
The five companies announced in December 2011 that three of them – Asahi Glass, Adeka and Kaneka – will withdraw from both joint ventures because of shrinking domestic demand for caustic soda, VCM and polyvinyl chloride (PVC).
The restructuring of the two joint ventures is expected to be completed by the end of December 2012, the five companies said.
After Asahi Glass, Adeka and Kaneka have withdrawn, Shin-Etsu Chemical will hold a majority share of 79% in Kashima Chlorine & Alkali, while Mitsubishi Chemical will hold a 21% stake, according to the producers.
For Kashima VCM, Shin-Etsu Chemical and Mitsubishi Chemical will hold increased stakes of 70.6% and 29.4% respectively, the companies said.
Currently, Asahi Glass, Adeka and Kaneka hold 25%, 23% and 8% stakes in Kashima Chlorine & Alkali respectively, while Shin-Etsu Chemical and Mitsubishi Chemical hold 23% and 21% shares respectively.
As for Kashima VCM, both Asahi Glass and Kaneka currently hold a 10% share each, while Adeka, Mitsubishi Chemical and Shin-Etsu Chemical hold 5%, 25% and 50% respectively.
Kashima Chlorine & Alkali produces 400,000 tonnes/year of caustic soda, while Kashima VCM produces 600,000 tonnes/year of VCM.
Meanwhile, the five companies plan to establish a new company, Kashima Berth at the end of December 2012, which will operate the berth (a facility to load and unload products) at the ?xml:namespace>
The berth is currently run by Kashima Chlorine & Alkali.
Asahi Glass will hold a 38% share in Kashima Berth, Adeka will hold 13%, Shin-Etsu will hold 23%, Mitsubishi Chemical will hold 21%, and Kashima Chlorine & Alkali will hold 5%, according to the producers.
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