Mitsubishi Rayon to form joint venture

Mitsubishi Rayon Co. Ltd., Japanese manufacturer of monomers and polymers, has signed a letter of intent with Saudi Basic Industries Corp. (SABIC) to establish a 50-50 joint venture (JV) to produce methyl methacrylate monomer (MMA) and polymethyl methacrylate (PMMA) in Saudi Arabia. The joint venture will have an annual production capacity of 250,000 tons MMA and 30,000 tons PMMA. SABIC would be responsible for supplying the necessary raw materials to the joint venture, including ethylene and ethanol. Mitsubishi Rayon will invest 50 trillion yen (US$557.5 billion) and will take a majority stake in the JV. The project is expected to start its operations from 2013. (August 12, 2009)