Mitsui Chemicals to sell organic acids business to Fuso Chemical

Mitsui Chemicals (MCI) has entered into an agreement to sell its organic acids business to Fuso Chemical by 1 October 2014.

 

The organic acids business operates a facility in Kamisu city, Ibaraki prefecture, which produces 32,000t of Maleic anhydride and 15,000t of Fumaric acid each year. It generates revenues of JPY5bn ($49.2m).

 

Until the transaction is finalised, Mitsui Chemicals will continue to manufacture and supply Fuso with the two products.

 

The parties are expected to sign a formal business transfer agreement by late June.

 

Earlier this year, MCI announced that it will close the Kashima site and cease production of Tolylenediisocyanate (TDI) by late December 2016, as part of restructuring of its polyurethane business.

 

A part of the Mitsui conglomerate, Mitsui Chemicals offers functional chemicals, functional polymeric materials, polyurethane, petrochemicals and films/sheets.

 

Fuso is a manufacturer of malic acid and uses maleic anhydride as its raw material, and it also engages in fruit acids, including gluconic acid and citric acid.

 

The company plans to establish a new production plant, which will use its organic acids to produce fruit acids and derivatives, and plans to shift its fruit acid production from its Osaka factory to Kashima Works.

 

Fuso manufactures and sells life science, electronic material and functional chemical products primarily for the domestic market.