Dainichiseika Color & Chemicals and Mitsubishi Corporation Establish Plastic
Compound Manufacturing and Sales Joint Venture in Mexico
Tokyo, Nov 11, 2013 - (JCN Newswire) - Dainichiseika Color & Chemicals
Mfg. Co., Ltd. (DNS) and Mitsubishi Corporation (MC) have entered into an
agreement for the establishment of a joint venture company (the Company) in the
State of Guanajuato, Mexico, to manufacture and sell plastic compound. The
capital contribution ratio of the Company is 65 percent by DNS, 35 percent by
MC group companies (30 percent by MC and 5 percent by Mitsubishi Corporation
(Americas)). The Company is scheduled to commence production in January, 2015.
Plastic compound is a granular shaped molding material, which consists of base
plastics and additives such as coloring pigments and reinforcing materials,
customized for various applications.
Automobile production in Mexico has reached approximately 3 million units per
year, making it the 8th largest car manufacturing country in the world, with
continued growth expected into the future. The demand for plastic compound, an
essential material for car production, is therefore also forecasted to
increase, together with the growing need for localized production.
In order to respond more effectively to demands for procuring plastic compound
locally, the Company will be set up in the state of Guanajuato, the major
center of automobile production in Mexico, and will serve as a base for
supplying high quality plastic compound in Mexico and in neighboring
DNS already has operations in a number of countries around the world,
particularly in Asia, and the establishment of the Company brings its global
footprint in the plastic compound business to 10 locations in 7 countries,
namely China (Shenzhen, Dongguan, and 2 locations in Shanghai), Vietnam,
Thailand, India, Netherlands, Brazil, and now Mexico. Through the Company, DNS
will continue to provide timely, customized manufacturing controls and other
services to customers, based on skills and expertise honed over the years. DNS
will provide support to the Company from Japan in an effort to optimize
production systems, manufacturing methods and quality controls, all with a view
to improving customer satisfaction.
MC will support the Company by applying knowledge of the plastics business
gained from experience in the United States to Mexico. MC will also continue to
play an important role in the plastics supply chain in the Americas.
Consequently, the Chemicals Department B of Mitsubishi Corporation de Mexico
S.A. de C.V will locate its Queretaro Annex Office within the vicinity of the
Company. The Office will serve as a base for the sale of plastic products,
including plastic compound, PVC resin and plastic additives.
About Mitsubishi Corporation
Mitsubishi Corporation (MC; TSE: 8058) is a global integrated business
enterprise that develops and operates businesses across virtually every
industry including industrial finance, energy, metals, machinery, chemicals,
foods, and environmental business. MC's current activities are expanding
far beyond its traditional trading operations as its diverse business ranges
from natural resources development to investment in retail business,
infrastructure, financial products and manufacturing of industrial goods. With
over 200 bases of operations in approximately 80 countries worldwide and a
network of over 500 group companies, MC employs a multinational workforce of
nearly 60,000 people. For more information, please visit www.mitsubishicorp.com.
Public Relations Department
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