Japan's Mitsui Chemicals announced plans to build a new plant in India to produce polyurethane seat covers for the country's automotive industry in partnership with South Korea's SK Chemicals.

Mitsui already has two joint venture plant in the country, including a majority-owned polypropylene compound facility in Rajasthan.

The new 50/50 joint venture plant will be built near Suzuki Motor's newly completed vehicle assembly facility in the north eastern state of Gujurat and is scheduled to become operational in 2019. It aims to tap into the strong growth projected for the country's automotive industry, with future vehicle production forecast to expand by 7% annually.

The new factory will have a production capacity of 10,000-15,000 tonnes of polyurethane sheets per year of different firmness and thickness to suit a wide range of models. This is equivalent to approximately 1m cars a year.

Suzuki Motor's new plant has initial capacity of 100,000 units but this will grow to 250,000 units per year.