RIYADH, SAUDI ARABIA (Feb. 28, 1:35 p.m. ET) — Saudi Basic Industries Corp. has signed a deal with Japan's Mitsui Chemicals under which Sabic will use Mitsui's technology to make TDI (toluene diisocyanate) and MDI (methylene diphenyl diisocyanate).
Both isocyanates are used to make polyurethanes, TDI largely for flexible foam and MDI for rigid insulation foam.
The agreement also provides for joint technology development by the companies, a Sabic statement said.
Expressing strong optimism over the agreement, Mohamed Al-Mady, Sabic vice chairman and CEO, said that it 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 power the ambition and competitive advantage of our customers for the long term,” he said. “It will also enable a fast development of PU application industries in Saudi Arabia, especially with regards to thermal insulation which will contribute to employment creation as well as energy savings.”