Mitsubishi Chemical Corporation and Ube Industries, Ltd. announced that they will establish a joint venture company by joint incorporation-type split to address the electrolyte business for lithium-ion rechargeable battery and other applications of both companies.
The parties have been jointly operating the business in China through Changshu UM Battery Materials Co., Ltd. in the form of a joint venture since January 2018. The parties have now agreed to expand the relationship to further enhance competitiveness in and outside of Japan in order to achieve the long-term development of the business. To this end, the parties will enhance product development capabilities through synergistic effects and strengthen the management base by streamlining purchasing, production, and sales systems. The parties will also integrate research and development and combine the intellectual assets and technical development capabilities possessed by the two companies.
Specifically, the parties will establish the new joint venture company in Japan and transfer the assets of both companies related to the business, including manufacturing sites in Japan, to the new joint venture company. In addition, Changshu UM Battery Materials Co., Ltd. will be a wholly owned subsidiary of the new joint venture company. MC Ionic Solutions US, Inc. (Tennessee, United States) and MC Ionic Solutions UK, Ltd. (Durham, United Kingdom) are wholly owned subsidiaries of Mitsubishi Chemical and will be outside the scope of the integration.
The integration will take the form of a joint incorporation-type split, with Mitsubishi Chemical and Ube Industries as the splitting companies and the new joint venture company as the successor company. On the day that the company split takes effect, Mitsubishi Chemical will own 80% and Ube Industries will own 20% of the issued shares of the new joint venture company. The new joint venture company, MU Ionic Solutions Corporation, will be established on October 10, 2020 with headquartered in Tokyo.