Agreement between Borealis and MCC
Borealis AG, a leading supplier of innovative value creating plastics solutions, and its U.S. subsidiary, Borealis Compounds LLC, have entered into manufacturing and supply agreements with affiliates of Mitsubishi Chemical Corporation (MCC) to improve the supply of polypropylene compounds (PP/CP) to the automotive industry in Europe and the United States. The agreements are intended to aid all companies in meeting demand and enhancing the competitiveness of their automotive customers, through localised production and supply of high quality, high-performance PP/CP materials.
High performance PP/PC materials are widely used in the production of exterior and interior automotive components, including bumpers, instrument panels, door trim panels and other interior applications, to meet the manufacturing performance, weight-saving and fuel reduction demands set by global automotive manufacturers.
Borealis will use its proprietary Borstar technology to manufacture high performance, speciality polypropylene compounds in accordance with a formula developed by Mitsubishi Chemical Europe GmbH. This formula is licensed by Japan Polypropylene Corporation (JPP), a joint venture between MCC and Chisso Corporation.
Borealis Group and MCC Group both are well established in the global automotive industry in several regions. Borealis Group has PP/CP Facilities in Europe and Brazil (through Joint Ventures between Borealis AG and Braskem S.A.) and MCC Group has PP/CP Facilities in Japan, U.S.A., China, Thailand and India.
Mark Garrett, Borealis Chief Executive, states: - We are excited to be working with JPP in a way that brings us even closer to our international automotive customers. Automotive OEMs produce vehicles on global platforms. As material producers we must therefore have capacity to supply high quality, high performance PP/CP and provide best-in-class service to customers globally.
According to JPP President, Masahiro Abe: - We believe that the agreements with Borealis will further improve our ability to fulfil our customer`s demand for polypropylene and will consolidate our position as a global supplier to the European automotive sector.
The manufacturing and supply agreement for PP/CP in Europe has been signed by Borealis AG (Vienna, Austria, CEO; Mark Garrett) and Mitsubishi Chemical Europe GmbH (Dusseldorf, Germany, CEO; Ryu Hasegawa, 100% owned by MCC).
The manufacturing and supply agreement for PP/CP in the U.S.A. has been signed by Mytex Polymers, U.S. Corporation (Jeffersonville, IN, U.S.A., CEO; Toshihiro Morimoto, 100% owned by MCC through a subsidiary) and Borealis Compounds, LLC (Port Murray, NJ, U.S.A., CEO; 100% owned by Borealis AG).