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Mitsubishi Rayon and Daicel to Form Acetate Tow Joint Venture

2:18 PM MDT | October 17, 2011 | —DEEPTI RAMESH

Mitsubishi Rayon says it has entered into a nonbinding letter of intent with Daicel (Osaka) to establish a joint venture to manufacture acetate tow for cigarette filters. Mitsubishi Rayon will spin off its acetate tow business, which has production at Toyama, Japan, to create a new company and transfer part ownership of that company to Daicel. Mitsubishi Rayon will have a 65% stake in the jv and Daicel will hold the rest. Daicel will supply cellulose acetate flake raw material to the jv, and the jv will supply its output to Mitsubishi Rayon and Daicel. Each...

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