TOKYO (ICIS)--Chemical producer Mitsubishi Rayon Co (MRC) and trading firm Mitsui & Co have signed a memorandum of understanding (MoU) for a methyl methacrylate (MMA) monomer joint venture in the US, the two Japanese companies said on Monday.
MRC and Mitsui will begin detailed feasibility studies to establish the US-based joint venture with a new world-scale production facility, they said in a joint statement.
MRC will be the majority shareholder of the joint venture, the two companies added.
The new joint venture plans to build and start up a new 250,000 tonne/year MMA plant in the US at the end of 2018, MRC and Mitsui said, without specifying its location or an investment cost.
MRC and Mitsui have also entered into a non-binding material terms of agreement with Dow Chemical Co concerning potential feedstock supply from the US-headquartered company to the joint venture. This agreement will also concern potential supply of MMA monomer from the joint venture to Dow.The new joint venture also intends to secure access to ethylene supply from Dow's US Gulf Coast production network, the two companies said.