Saudi Basic Industries Corp. (SABIC) has signed a toluene di-isocyanate (TDI) and methylene di-phenyl isocyanate (MDI) technology license agreement with Mitsui Chemicals, under which Mitsui will provide manufacturing technology for producing TDI and MDI. TDI and MDI are each raw materials for producing polyurethane. The agreement also provides for joint technology development in TDI/MDI, officials said. The official signing ceremony (Fig. 3) took place at SABIC headquarters in Riyadh, Saudi Arabia, and featured Mohamed Al-Mady, SABIC vice chairman and chief executive officer, and Toshikazu Tanaka, Mitsui Chemicals president and CEO.
Fig. 3. Executives from SABIC and Mitsui Chemicals
ink a deal in Riyadh, Saudi Arabia.
Mr. Al-Mady said that the partnership would spearhead a strategic collaboration between the two companies to explore future possibilities to collaborate in the polyurethane business. The agreement will spur our strategic business plan to penetrate the global polyurethane market, as well as to power the ambition and competitive advantage of our customers for the long term, he said. It will also enable a fast development of polyurethane application industries in Saudi Arabia, especially with regard to thermal insulation, which will contribute to employment creation in addition to energy savings.
Mr. Al-Mady pointed out that Mitsui Chemicals has lengthy experience as a manufacturer of TDI and MDI and has developed pioneering manufacturing processes. Through this technology license agreement, we will strengthen our product capabilities with high-quality TDI and MDI, and expand into the polyurethane business, he said.
For Mitsui Chemicals, this license agreement will be the largest and most extensive one we have ever made, Mr. Tanaka said. We will support this project full force on every front and are committed to its success. I hope that it will be just the first step in a future business partnership with SABIC, which may include the establishment of a strategic supply base for competitive TDI/MDI. HP