Mitsubishi Chemical Holdings and Mitsui plan to form a joint venture to produce methyl methacrylate (MMA) in the US from shale gas-derived feedstocks, Japanese reports say.

In a first step, the jv will collaborate with Dow Chemical on a new plant set to start up around 2018.

Mitsubishi Rayon, a subsidiary of Mitsubishi Chemical Holdings, world's largest producer of MMA, has advanced technology and is said to be looking at shale gas feed to save costs.

Mitsui, which already owns rights to develop and produce gas in the US, expects the new project to strengthen its gas business.

Utilities in Japan, which are supplied by trading houses - including Mitsubishi and Mitsui - have been looking to North American shale gas to diversify their fuel sources in the wake of the Fukushima nuclear disaster in 2011.