Mitsubishi Gas Chemical and Celanese Corp. agree to restructure Korean polyacetal business

Mitsubishi Gas Chemical Co., Inc. (‘MGC’; Head Office: Chiyoda-ku, Tokyo; President: Masashi Fujii) today announced that it has reached an agreement with Celanese Corporation (‘Celanese Corp.’) to restructure their joint venture, Korea Engineering Plastics Co. (‘KEP’), and review the company’s management structure. South Korea-based KEP is engaged in the manufacture and sales of engineering plastics, primarily polyacetal (‘POM’).

KEP, an equity method affiliate of MGC, has one of the world's largest POM production capacities (6 lines, 140,000 tons/year), made possible using technology under license from MGC. Since its establishment in 1987, KEP has successfully expanded its sales territory around the world while strengthening its presence in South Korea and expanding into a wide range of fields such as automotive, medical, electrical, and machinery.

Under the agreement announced today, KEP will operate as a manufacturing company primarily producing POM. As shareholders, MGC and Celanese Corp. will receive output from KEP in proportion to their ownership stakes in the company and both will have the right to market KEP’s products worldwide.

In line with KEP’s restructuring, MGC will establish a new company in South Korea in 2021 to sell KEP products. MGC will incorporate a "market-in" sales approach at the new company and share information and experience in order to provide products that meet the needs of customers, while supporting the development of MGC’s own POM business.

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