[Photo provided by SKC Co.]
Polyurethane chemicals maker Mitsui Chemicals & SKC Polyurethanes Inc. (MCNS), a joint venture between South Korea’s SKC Co. and Japan’s Mitsui Chemicals Inc., has opened a polyurethane system house in India to broaden its presence in the world’s second-most populous country.
The new facility that took a year and half to complete boasts an annual capacity of 15,000 tons, said SKC on Thursday. It is located in Sri City in the state of Andhra Pradesh of southern India, near Chennai where the manufacturing sites of many of its Korean and Japanese clients are based.
This marks MCNS’ 11th system house across the globe, according to SKC. A system house is a plant that produces customized polyurethane products by mixing additives into polyol or MDI materials.
“Through operation of the new system house, MCNS will increase supply to Indian companies while continuing to service high-quality products to Korean and Japanese clients,” said a SKC official. “We plan to build more system houses overseas in high-growth areas.”
MCNS’S Polyurethane System House in India. [Photo provided by SKC]
MCNS entered the Indian polyurethane market in February 2017, drawn by the country’s enormous growth potential. India is the world’s seventh-largest economy with a population of 1.3 billion won. The country is also the world’s fifth-largest car producer and makes about 9 million units of refrigerators every year. Some of MCNS’ major clients include Hyundai Motors, Samsung Electronics, Toyota and Nissan.
MCNS was formed in July 2015 as a 50:50 joint venture between SKC and Mitsui Chemicals after the two companies spun off their polyurethane businesses. The company currently operates 17 manufacturing facilities across 10 countries. With an annual production of 750,000 tons, it generates about 1.2 trillion won ($1.07 billion) in sales every year.
Meritz Securities Co. in a recent report raised its price target of SKC to 58,000 won and gave a “buy” rating to the stock on grounds that the company is showing a solid growth momentum compared to its rivals. Among the upsides were the September ramp-up of its semiconductor materials facility and rosy outlook of its subsidiaries in China and the United States.
On Thursday, SKC shares gained 0.68 percent to close the day at 44,550 won.
By Hwang Soon-min and Kim Hyo-jin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]