Mitsui Chemicals and Sanyo Chemical Industries have announced the establishment of a 50-50 Limited Liability Partnership (LLP) for the aim of solving common issues in the production of polypropylene glycols (PPGs), such as improving productivity and securing future supply stability in Japan.

PPGs are chemical materials obtained through polymerization of alkylene oxides such as propylene oxide (PO) and ethylene oxide (EO) to polyhydric alcohols. PPGs are one of the main raw materials for polyurethanes. Polyurethanes are used in a wide range of applications, including automotive parts, furniture and bedding, heat-insulating construction materials, paints, and adhesives.

The global market for polyurethanes continues to expand. In Japan, demand for high-performance, high-value-added polyurethanes is expected to grow in response to changes in the market, such as the spread of next-generation automobiles, smart homes, and environmental responsiveness, while demand for general-purpose products is on a downward trend.

 In addition, the competitive environment with overseas manufacturers in both domestic and overseas markets is becoming increasingly severe.

Under these circumstances, two companies have agreed that it is necessary to cooperate with a partner who share the same recognition in order to maintain a sustainable and efficient production system and strengthen competitiveness in the PPG business strategy.

Through the establishment of this LLP, two companies will work to achieve both continuous stable supply and securing of profit in the PPG business.