Mitsui Chem, Idemitsu Kosan, Sumitomo Chem to integrate Japan polyolefins units

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Mitsui Chemicals, Idemitsu Kosan, and Sumitomo Chemical announced on Wednesday plans to merge key parts of their polyolefin businesses in Japan to tackle chronic oversupply amid shrinking domestic market, as per Polymerupdate.The companies have signed a memorandum of understanding (MoU) to integrate Sumitomo Chemical’s domestic polypropylene (PP) and linear low density polyethylene (LLDPE) operations into Prime Polymer Co, an existing joint venture between Mitsui Chemicals and Idemitsu Kosan, the Japanese companies said in a joint statement.The move is a direct response to a challenging domestic landscape for polyolefins.Under the terms of the agreement, Sumitomo Chemical plans to transfer its relevant businesses to Prime Polymer in exchange for a 20% stake in the company.Under the proposed deal, the revised ownership structure of Prime Polymer will be: Mitsui Chemicals: 52% (down from 65%), Idemitsu Kosan: 28% (down from 35%), Sumitomo Chemical: 20%.The combined entity will have a domestic production capacity of 1.59 million tonnes/year of polypropylene (PP) and 720,000 tonnes/year of polyethylene (PE), up from 1.26 million tonnes/year of PE and 550,000 tonnes/year of PP. The integration is scheduled for completion in April 2026.mrchub.com

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