Mitsui Chemicals, Idemitsu Kosan, and Sumitomo Chemical plan to merge key parts of their polyolefin businesses in Japan to address oversupply amid a shrinking domestic market.
The plan will 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. Under the revised ownership structure, Prime Polymer will be 52% owned by Mitsui Chemicals (down from 65%), 28% owned by Idemitsu Kosan (down from 35%), and 20% by 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 firms are targeting annual cost savings of more than ¥8 billion ($54 million). The integration is scheduled for completion in April 2026.
- Mitsui Chemicals, Inc., Tokyo, Japan
- Idemitsu Kosan, Tokyo, Japan
- Sumitomo Chemical Co., Ltd., Tokyo/Osaka, Japan
