Japanese firm Mitsubishi Chemicals Corporation (MCC) announced Tuesday that it has agreed to a framework to transfer its light metal products business to Konfoong Materials International Co. Ltd. (KFMI) and its affiliate company Shanghai Electro-Mechanical High-Tech Co. Ltd. (TCPR).
KFMI and TCPR are involved in the production of sputtering target materials for semiconductors and liquid crystal displays. They are among the world’s biggest producers of aluminum target materials, according to MCC.
The companies “plan to strengthen their business by acquiring businesses positioned upstream from their own operations, ands securing a base in Japan,” the release stated.
Mitsubishi Chemical said the divestiture is linked to broader efforts to enhance its portfolio management. The company said it is also mulling a separation from manufacturing and sales of its KN series of aluminum alloys for molding applications, which is part of its light metals business, but not included in the transfer.