Carbon Black Businesses Discuss Joint Venture

The proposed joint venture will be split 60:40 between Tokai carbon and Mitsubishi Chemical and would see Mitsubishi Chemical transfer its carbon black business to the new company. The companies expect that the new business will generate 20 billion yen, approximately £100 million, a year in sales.

The businesses plan to establish the new company in April 2005 subject to approval from the fair trade commission.

According to analysts Mitsubishi’s alliance with Tokai Carbon, the largest carbon black manufacturing company in Japan, will create a synergy of production, sales and technology between the two companies. Mitsubishi Chemical believes that the alliance will improve the competitiveness of all its carbon related business.