Japan’s Ube forms joint venture to build Malaysia BR facilities

13 March 2013 09:46  [Source: ICIS news]

SINGAPORE (ICIS)--Japan’s Ube Industries said on Wednesday it has established a joint venture to build manufacturing facilities capable of producing 50,000 tonnes/year of butadiene rubber (BR) in Johor, Malaysia.

Ube’s joint venture partners are South Korea’s Lotte Chemical Corp and its Malaysian subsidiary Lotte Chemical Titan Holding, and Japan’s Mitsubishi Corp.

Production at the proposed BR facilities is scheduled to start in 2014 and the BR capacity may be expanded by 22,000 tonnes/year “as demand dictates”, Ube said in a statement.

Financial details of the project were not disclosed.

Lotte Chemical Titan will supply the raw material butadiene (BD) for the planned BR facilities, Ube said.

“Demand for BR is expected to grow by some 6-7% in the future, centering on the Asian market, which is the biggest market for BR,” Ube said.

The company cited that downstream tyre manufacturers are moving ahead with plans to increase production in Asia.

Meanwhile, Ube Industries also plans to add a further 16,000 tonnes/year of BR production capacity in Chiba, Japan, in late 2013.The company’s annual production capacity of BR in Chiba currently stands at 110,000 tonnes.

The company also has 72,000 tonnes/year of BR production capacity each in Thailand and China.

By: Nurluqman Suratman

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