Japan“s Asahi Glass Co. is planning to terminate its procurement of vinyl chloride ingredients from a joint venture at the end of March as part of its strategy to downsize its unprofitable vinyl chlo…
Japan“s Asahi Glass Co. is planning to terminate its procurement of vinyl chloride ingredients from a joint venture at the end of March as part of its strategy to downsize its unprofitable vinyl chloride business. According to a recent report, Asahi Glass is now in the final stage of negotiations with Shin-Etsu Chemical Co. and other partners in the joint venture, Kashima Vinyl Chloride Monomer Co., on the retrenchment plan. Kashima Vinyl is based in Kamisu, Ibaraki Prefecture, northeast of Tokyo. Asahi Chemical intends to retain its 10% stake in the joint venture for the time being, the report said. The step comes as the glass giant was charting a new strategy to shield itself from the sluggish domestic market for vinyl chloride, which is used in water pipes and other plastic products. Asahi Glass currently procures about 100,000 tons of vinyl chloride ingredients from Kashima Vinyl for direct sales as well as for shipments to subcontractors which manufacture chloride vinyl on behalf of Asahi Glass. The joint venture“s annual output reaches some 600,000 tons. Asahi Glass plans to concentrate its vinyl chloride and related production on facilities in Ichihara, Chiba Prefecture, east of Tokyo, where another vinyl chloride joint venture, formed with Kureha Chemical Industry Co. and other firms, operates, said the report.