On May 28, Shanghai Sinopec Mitsui Elastomer Co., Ltd. was officially established. China Petroleum & Chemical Corporation stated that the company will invest about 2 billion yuan in the Shanghai Chemical Industry Park in China to build a new production unit with an annual output of 75,000 tons of EPDM rubber using a metallocene catalyst, the most advanced technology, and the largest scale in the world. It is expected that commercial operations will begin in the first quarter of 2014.
According to reports, the company was established by Sinopec and Japan Mitsui Chemicals (Mitsui Chemical) Co., Ltd. with a capital ratio of 50:50. With a registered capital of approximately RMB 630 million, the company's main business is the production and sale of EPDM rubber products.
According to Sinopec, Mitsui Chemical's metallocene catalyst solution polymerization technology is currently the world's most advanced EPDM rubber production technology, and it has advantages in both product quality and cost competitiveness. Shanghai Sinopec Mitsui Elastomer Co., Ltd. will strive to establish a production supply system as soon as possible to meet the rapidly growing demand for China's EPDM rubber market as soon as possible.
It is understood that the two parties signed the "Letter of Intent on Launching the EPDM Joint Venture Project" in December 2009 to jointly carry out the feasibility study of the project. Recently, they have passed the examination and approval of the relevant departments of the Chinese government and a joint venture company has been established.
It is reported that in 2011, the apparent consumption of EPDM in China was 237,400 tons, and the import volume was 223,000 tons, and the import dependency remained high. Sinopec Corp. expects that with the rapid development of the Chinese auto market and the increase in investment in public facilities such as railways, the market demand for EPDM rubber products will increase significantly.
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