SINGAPORE (ICIS)--Japan’s Mitsui Chemicals Inc (MCI) said on Thursday that it has signed a deal to transfer its organic acids business, including inventories and fixed assets, to Fuso Chemical Co Ltd for more than yen (Y) 1bn.
Covered in the transfer are MCI’s production of 32,000 tonne/year maleic anhydride (MA) and its 15,000 tonne/year fumaric acid production unit at KashimaWorks in Ibaraki prefecture, MCI said in a statement.
A final decision on the amount will still have to be made upon the transfer, it said.
Business rights to the organic acids operations will be transferred to Fuso Chemical on 1 October 2014.
Fuso Chemical is Japan’s only manufacturer of maleic acid that uses MA as raw material.
The business transfer is in line with MCI’s decision to close Kashima Works that would terminate all plants at the site, including those that produce toluene di-isocyanate (TDI), special isocyanates and organic acids by late December 2016, in line with the company’s restructuring strategy.
The organic acids operations are targeted to change ownership in the first half of fiscal year 2017, after the dismantling of the TDI plant at the site.
“Mitsui Chemicals will manufacture under contract and supply Fuso with the two products until transfer of production facilities is finalised,” the company said.