Japan: Trinseo and Sumitomo Chemical Polycarbonate Joint Venture: Share Transfer Agreement
Trinseo Holding and Sumitomo Chemical have signed a definitive agreement for Trinseo to sell all of its 50 % share in their Sumika Styron Polycarbonate (SSPC) joint venture to Sumitomo Chemical.
Erwyn/USA — Sumika Styron Polycarbonate currently produces polycarbonate resins at production facilities in Niihama City, Ehime, Japan, and serves customers and markets throughout Asia. In addition to the sale of Trinseo’s ownership in the joint venture, the parties have agreed to continue long-term supply of polycarbonate resin to Trinseo’s Performance Plastics businesses and as such will maintain the strategic relationship between SSPC and Trinseo. The transaction is expected to close on January 31, 2017. Terms of the agreement are not disclosed. Following the close, it is expected that SSPC will operate as a wholly owned subsidiary of Sumitomo Chemical. SSPC will continue to operate and will be renamed Sumika Polycarbonate Limited after a transitional period.
“Sumitomo Chemical is a natural owner for this Japan-based polycarbonate plant, and as an industry leader in the region, Sumitomo Chemical is better positioned to manage and deliver value from this asset in the future,” said Tim Stedman, Senior Vice President and Business President for Basic Plastics and Feedstocks, Trinseo. “At the same time, Asia Pacific continues to be an important growth region for Trinseo, and the company is strongly committed to growing our Performance businesses in the region.”