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Huchems Fine Chemical Corp., the chemical unit of South Korea’s Taekwang Industrial Co., announced on Thursday that it signed a long-term deal worth 742.2 billion won ($658.4 million) to supply mononitrobenzene, an intermediary agent for production of rubber chemicals, to Kumho Mitsui Chemicals Corp., an affiliate of Kumho Asiana Group.
Under the deal, Huchems would deliver 70,000 tons annually in the compound for the next 15 years - or 1.05 million tons in total - to Kumho Mitsui Chemicals, a joint-venture factory based on Yeosu in Korea.
Huchems CEO Choi Geom-sung (third from left) and Kumho Mitsui Chemicals CEO On Yong-hyun (fourth from left) pose for a group photograph after signing the supply agreement at the headquarter office of Huchems in Seoul. (Photo by Huchems)
The latest deal would increase its regular supply to Kumho Mitsui to 40,000 tons from current 330,000 tons and secure 50 billion won in stable revenue over the next 15 years.
MNB is the raw material of Methylene Diphenyl Diisocyanate (MDI) and polyurethanes, a base material for making insulation materials for buildings, interior materials for cars and home appliances.
By Lee Jae-cheol
Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.
Source: Pulse by Maeil Business News Korea (Aug. 3, 2017)