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Showa Denko to License Vinyl Acetate Monomer Technology to Shenghong Refining Petrochemical, China

Showa Denko to License Vinyl Acetate Monomer Technology to Shenghong Refining Petrochemical, China

TOKYO, Nov 19, 2019 - (JCN Newswire) - Showa Denko (SDK; TSE:4004) has decided to license its technology to produce vinyl acetate monomer (VAM) to Shenghong Refining Petrochemical (Lian Yun Gang) Co., Ltd., China, under a formal alliance agreement between SDK and KBR (NYSE: KBR), a global engineering and technology solutions company based in the U.S.. In addition, SDK will provide catalysts for the VAM production facility to be constructed by Shenghong Refining Petrochemical Co., Ltd. (SRP).

SDK has been producing VAM from ethylene at its Oita Petrochemical Complex for 40 years, and has polished high-level technologies including that to develop catalysts. SDK formed an alliance with KBR in 2015, and since then, the two parties have been investigating possibilities to operate business to license SDK's technologies to produce organic chemicals. As a result, SRP decided to adopt SDK's technologies to produce VAM. The new VAM unit to be constructed in the premise of SRP is expected to have a capacity to produce 300,000 tons of VAM per year.

The Showa Denko Group has a vision of becoming a corporate group of Koseiha businesses (individualized businesses), which can maintain high levels of profitability and stability in each business sector, and aims to make more than half of its business sectors Koseiha businesses by 2025. In its Petrochemicals segment, which operates organic chemicals business including VAM production, the Group has been making effort to strengthen its business character in order to maintain high profitability which is resistant to market fluctuation. Toward the future, SDK will continue aiming to make its petrochemicals business the most competitive one in East Asia by enhancing competitiveness of Oita Petrochemical Complex through commercialization of new derivatives and expanding its licensing business.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY), a major manufacturer of chemical products, serves a wide range of fields from heavy industry to electronics and computer industries. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, and the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory and graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high-bright LEDs and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.

Contact:Showa Denko K.K., Public Relations Office, Tel: 81-3-5470-3235

Copyright 2019 JCN Newswire. All rights reserved. www.jcnnewswire.com

Authors: ACN Newswire - Press Releases

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