SHOWA DENKO, ASAHI CHEMICAL IN PLASTICS DEAL

SHOWA DENKO, ASAHI CHEMICAL IN PLASTICS DEAL

Showa Denko KK and Asahi Chemical Industry Co., two major Japanese petrochemical companies, have agreed to cooperate on polyethylene production, allowing both companies to stop operations at some of their facilities.

An announcement issued by the two companies said that, starting in March, Showa Denko will provide Asahi Chemical with about 20,000 metric tons annually of linked low-density polyethylene.In return, Asahi Chemical will provide Showa Denko with an annual combined total of 20,000 tons of high- and low-density polyethylene.

The move will allow Asahi Chemical to suspend production at its Mizushima plant, which produces about 40,000 tons a year of linked low-density polyethylene.

Showa Denko will close one line of its low-density polyethylene production facility at its Oita plant, reducing production by 25,000 tons a year.

The two companies, which already have sales links, plan to cooperate further in production and possibly in distribution, the announcement said.