Mitsubishi Corporation (MC) has announced that it has reached an agreement with Taiwan’s Shinkong Synthetic Fibers Corporation (Shinkong), a Taiwan-based major producer of polyester fiber and polyethylene terephthalate (PET), to accept a third-party allotment of shares in the Shinkong subsidiary Thai Shinkong Industry Corp. Ltd (TSIC), a Thailand-based producer of PET used to make plastic beverage bottles. This subscription will increase MC’s share in TSIC from 3.85 percent to 34 percent.
Shinkong is a core Shinkong Group company and one of Taiwan’s leading private enterprises. Since playing a part in Shinkong’s establishment in 1967, MC has built up a strong, strategic partnership with the Taiwanese company through the trade of both raw materials and products in its PET value chain, a central part of MC’s petrochemicals operations.
PET is a mono-material boasting excellent transparency, glossiness and barrier properties. Highly recyclable due to well-established collection and recycling facilities, PET has a wide range of applications, including both beverage and food containers and apparel-use textiles.
Increase the production of recycled PET
With pressure to transition to circular economies on the rise, there has been growing demand around the world for mono-material packaging. TSIC is responding by expanding its PET production capacity. The company also plans to begin producing recycled PET with new chemical recycling technologies, the introduction of which is expected to increase recycling rates.
In addition to increasing its stake in TSIC, MC will be assigning one of its officers to the subsidiary to assist with its management. By leveraging Shinkong’s technical expertise, MC promotes recycled PET to the growing market with a focus on the Japanese market.
MC hopes to accelerate initiatives aimed at reducing marine plastics, which contribute to “Procuring and Supplying in a Sustainable Manner”, one of MC’s Key Sustainability Issues, in line with the three-value mission – simultaneous generation of economic, societal and environmental value.