Japan's Mitsui Chemicals and Itoh Oil Chemical have signed a joint venture agreement with India's Jayant Agro-Organics for the establishment of a company based in Gujarat, India to produce bio-polyol, a raw material for polyurethane foams. An 8,000 tonnes/yr plant is scheduled to start up in January 2015.

Mitsui Chemicals manufactures and distributes polyurethane raw materials for various applications including insulation for refrigerators. The Company is also the largest supplier of polyurethane raw materials for automotive interiors to Japanese manufacturers and is the world's only commercial supplier of non-edible plant-derived bio-polyol.

The joint venture will make bio-polyol cost competitive with fossil derived polyol, allowing Mitsui Chemicals to target further expansion of automotive application sales on its own and through its six system houses strategically located throughout Asia.

Itoh Oil Chemical is Japan's leader in castor oil production with state-of-the-art refineries, manufacturing technology, and quality control expertise in castor oil derivatives such as fatty acids. The Company targets use of other by-products, co-produced in the manufacture of bio-polyol, in development of new applications to expand its castor oil derivative market and intensify existing businesses such as its urethane elastomer operations.

Jayant Agro-Organics is the world's leading producer of castor oil. Through supply of raw materials derived from castor oil to the new joint venture, the Company targets development of new business in the castor oil derivatives sector to further strengthen its position in the castor business.

The partnership of the three companies who bring their own unique strengths to the table in India, where 80% of the world's castor oil is produced, and establish a stable supply base for cost-competitive bio-polyol.