(MENAFN - Arab News) 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.
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.