- Strengthening the Supply Chain for Semiconductors and Next-Generation Batteries
According to the company’s website news release on February 9, 2023, Sojitz Corporation (“Sojitz”) and Orbia’s Fluorinated Solutions business Mexichem Fluor, S.A.de C.V. (“Koura”), a global leader in the development, manufacturing, and supply of fluorinated products headquartered in the U.S., and its Japanese entity Mexichem Fluor Japan Ltd., have entered into a regional land cooperation agreement (hereinafter, "Agreement") with Kitakyushu City, Fukuoka Prefecture (hereinafter, "Kitakyushu City") with the aim of establishing a stable domestic supply of fluorinated materials for which further growth in demand is expected.
Based on this Agreement, the parties aim to construct a manufacturing base for fluorine raw materials in Hibikinada Oceanfront Industrial Park. The location in Kitakyushu City has a competitive advantage for its well-established industrial and logistical infrastructure. This manufacturing base will strengthen the fluorine supply chain in Japan built on the foundation of stable integrated feedstock from Koura fluorspar mines – fluorspar being the key raw material for hydrogen fluoride, which is used as the starting material for fluorinated products.
In addition, this project has been selected by the Ministry of Economy, Trade and Industry’s "Program for Promoting Investment in Japan to Strengthen Supply Chains," and this initiative is anticipated to contribute to the steady development of Japan’s industries.
Each fluorinated product has unique properties and is used in a wide range of industries. In particular, it is an essential material for industries that will become increasingly important in the future, such as semiconductors, next-generation batteries, medical and telecommunications. While demand for fluorinated products is expected to increase as each industry grows, Japan currently imports most of its domestic demand for fluorine raw materials from overseas.
In this project, the parties will combine Koura’s strength as the world's largest fluorspar miner with associated fluorine raw material expertise, together with Sojitz's business management know-how and sales network to create Japan's first fluorinated materials production business using fluorspar produced in Mexico. Through this initiative, the parties aim to contribute to the strengthening of the fluorine supply chain in Japan and the development of downstream industries.
Through the support of Kitakyushu City, the volume of cargo handled at the Port of Kitakyushu is expected to increase, including the import of raw materials and the transport of product, which will also contribute to the creation of new jobs. In addition, the project will support the revitalization of the semiconductor industry in the Kyushu area, which is in line with the growth strategy of Kyushu, known as "Silicon Island."
With the execution of this Agreement, the parties will promote the development of new businesses that meet social needs under a strong partnership with Sojitz and Koura that has lasted more than 30 years.
About Sojitz Corporation
For more than 160 years, Sojitz's business has helped to support the development of countless countries and regions. Today, the Sojitz Group consists of approximately 400 subsidiaries and affiliates located in Japan and throughout the world, developing wide-ranging general trading company operations in a multitude of countries and regions.
About Orbia
Orbia is a company driven by a shared purpose: to advance life around the world. Orbia operates in the Polymer Solutions (Vestolit and Alphagary), Building and Infrastructure (Wavin), Precision Agriculture (Netafim), Connectivity Solutions (Dura-Line) and Fluorinated Solutions (Koura) sectors. The five Orbia business groups have a collective focus on expanding access to health and wellness, reinventing the future of cities and homes, ensuring food and water security, connecting communities to information and accelerating a circular economy with basic and advanced materials, specialty products and innovative solutions. Orbia has commercial activities in more than 110 countries and operations in over 50, with global headquarters in Boston, Mexico City, Amsterdam and Tel Aviv. To learn more, visit: orbia.com.
About Orbia’s Fluorinated Solutions (Koura)
Orbia’s Fluorinated Solutions business Koura is a global leader in the development, manufacture and supply of fluorinated products that play a fundamental role in enhancing everyday lives and shortening the path to a sustainable, circular economy. Backed by over 35 years of experience, Koura’s products are used in a vast range of applications including electric vehicles and energy storage, urban and rural infrastructure, indoor climate management, food and medicine refrigeration and even in treating respiratory conditions through the development of healthy and innovative low-GWP propellants for metered-dose inhalers. Koura has 1,600 employees and 13 manufacturing facilities worldwide, serving 60 countries through a global sales and distribution network.
