Mitsubishi Chemical Corporation (MCC) announced that it has completed the acquisition of the PVC compounding business of Welset Plast Extrusions Private Limited in India and plans to build a new plant to produce thermoplastic elastomers for automotive interior parts and other products (TPE). Production plans will begin before the end of fiscal year 2019.
After the decomposition of Welset Plast Extrusions Private Limite, MCC acquired Arparn Plast Compound Private Limited (PVC compounding business) and will be renamed MCPP India Private Limited after the completion of the acquisition.
The application of MCC's high-performance polymer products in the Indian automotive industry continues to expand and is expected to continue to maintain steady growth in the future. MCC will now outsource TPE production to India.
Welset is a company engaged in masterbatch (including PVC masterbatch) and PVC composite business. Welset's PVC compounding business has a solid foundation in the Indian and ASEAN markets because it has a leading market share in the Indian medical field. At the same time, MCC manufactures and sells TPE in India, and expands its business in automotive applications, mainly airbag covers. This acquisition enables MCC to enter the medical PVC compound business area. In addition, MCC will use Welset's marketing channels and infrastructure to accelerate the development of its existing PVC and TPE businesses in India and the ASEAN market.
MCC will continue to develop high-performance polymer businesses, diversify its application product portfolio, and accelerate business development in growth markets.