SAUDI ARABIA. The Saudi Basic Industries Corporation (SABIC) has signed a TDI and MDI technology license agreement with Mitsui Chemicals, Inc., in keeping with the company’s strategic plan to be a global leader in polyurethane and serve its customers with value-added services, solutions and products.
Under the agreement, Mitsui will provide manufacturing technology for producing TDI and MDI, which are both raw materials for producing polyurethane. The agreement also provides for joint technology development in TDI/MDI.
The agreement was signed by Mohamed Al-Mady, SABIC Vice Chairman and CEO, and Toshikazu Tanaka, Mitsui Chemicals President and CEO, at SABIC’s headquarters in Riyadh on February 26.
Expressing strong optimism over the agreement, Al-Mady said that it would spearhead a strategic collaboration between the two companies to explore future possibilities to collaborate in the polyurethane (PU) business.
“The agreement will spur our strategic business plan to penetrate the global polyurethane market as well as power the ambition and competitive advantage of our customers for the long term,” he said. “It will also enable a fast development of PU application industries in Saudi Arabia, especially with regards to thermal insulation which will contribute to employment creation as well as energy savings.”
Al-Mady pointed out that Mitsui Chemicals has a long experience as a manufacturer of TDI and MDI and has over the years developed pioneering manufacturing processes. “Through this technology license agreement, we will strengthen our product capabilities with high quality TDI and MDI and expand into the polyurethane business,” he said
Tanaka commented, “For Mitsui Chemicals, this License Agreement will be the largest and most extensive one we have ever made. We will support this project full force on every front and are committed to its success. I hope that it will be just the first step in a future business partnership with SABIC , which may include establishment of a strategic supply base for competitive TDI/MDI.
Polyurethane is a resilient, flexible and durable manufactured material that can take the place of paint, cotton, rubber, metal or wood in thousands of applications across virtually all fields.
Polyurethane will serve a very rich variety of segments including building and construction, automotive and transportation, furniture and bedding, sports and footwear, food packaging, cold chain and refrigeration, and home appliances. The advantages of polyurethane include strength and flexibility, application versatility, variable rigidity/firmness, and high performance.
Saudi Basic Industries Corporation (SABIC) ranks among the world’s top petrochemical companies. The company is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
SABIC recorded a net profit of SR 29.21 billion (US$ 7.79 billion) in 2011. Sales revenues for 2011 totaled SR 190 billion (US$ 50.67 billion). Total assets stood at SR 332 billion (US$ 88.5 billion) at the end of 2011.
SABIC’s businesses are grouped into Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and Innovative Plastics. SABIC has significant research resources with 17 dedicated Technology & Innovation facilities in Saudi Arabia, the USA, the Netherlands, Spain, Japan, India and South Korea. The company operates in more than 40 countries across the world with more than 33,000 employees worldwide.
SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.