Kumho Petrochem signs MOU with Japanese second-largest refiner

South Korea's Kumho Petrochemical Co. and Idemitsu Kosan Co., a Japanese refining and petrochemical company, announced on May 17 that they have signed a memorandum of understanding (MOU) to supply bio styrene monomer (SM).

Idemitsu Kosan is the second-largest refiner in Japan and the largest SM manufacturer. Kumho Petrochemical plans to use the bio SM supplied by Idemitsu Kosan to produce solution styrene butadiene rubber (SSBR), a high-performance synthetic rubber for tires, which is one of its main products.

Sumitomo Corporation of Japan will coordinate the cooperation between the two companies and develop the biopolymer market.

The companies plan to complete discussions on specific supply plans and production optimization by the end of 2024 and start full-scale operations.

Bio SM is made from bio naphtha, which is made from plant-derived raw materials. Basic oil fractions such as ethylene and butadiene are mainly made using naphtha extracted from crude oil. However, Kumho Petrochemical expects to expand the use of bio SM produced from bio naphtha through the latest cooperation, reduce carbon and greenhouse gas emissions and strengthen the environmental, social and governance (ESG) management cooperation network.

"This means that leading companies in Korea and Japan will cooperate in good faith to bring out each other's strengths within the framework of mutual coexistence for the common future," a Kumho Petrochemical official said.

Kumho Petrochemical has also been involved in the recycled styrene (RSM) business, which recycles waste polystyrene (PS) and applies it to SSBR, and the PCR PS business, which recycles waste plastic containers and supplies them to domestic home appliance manufacturers as high-quality refrigerator materials.

Kumho Petrochemical plans to further expand its relationship for sustainable management based on this cooperation.

Write to Jae-Fu Kim at hu@hankyung.com