Mitsui Chemicals, Idemitsu Kosan, and Sumitomo Chemical have agreed to integrate their polyolefin businesses under Prime Polymer to enhance competitiveness in Japan's declining market.

Information on the Target

Mitsui Chemicals, Inc. (Mitsui), Idemitsu Kosan Co., Ltd. (Idemitsu), and Sumitomo Chemical Co., Ltd. (Sumitomo Chemical) have entered into a definitive agreement to integrate their respective polyolefin businesses. This integration involves Sumitomo Chemical's polypropylene (PP) and linear low-density polyethylene (LLDPE) sectors into a joint venture named Prime Polymer Co., Ltd. (PRM), which has been operational since 2005. PRM aims to enhance its competitiveness in the Japanese polyolefin market, where these materials are critical components used in various applications including automotive, electronics, and healthcare.

The upcoming business integration seeks to address the ongoing challenge of oversupply in the domestic market, despite previous consolidation efforts among local manufacturers dating back to the 1990s. It anticipates that the demand for polyolefins may further decline due to a decreasing population and evolving consumer behaviors, emphasizing the necessity for this strategic collaboration.

Industry Overview in Japan

The polyolefin industry is a vital segment of Japan's plastic material market, comprising around 50% of the total demand for plastics. Polypropylene and polyethylene are extensively utilized across multiple sectors, including transportation, electron