Daicel to absorb Polyplastics in strategic company split

Daicel Corporation announced on October 16, 2025, a plan to absorb the entire business of its consolidated subsidiary, Polyplastics Co., Ltd., excluding Polyplastics' equity holdings. This absorption-type company split, effective April 1, 2026, aims to accelerate the "Accelerate 2025" medium-term strategy, enhance Daicel's engineering plastics business, and maximize corporate value through shared technical expertise, strengthened internal collaborations, efficient human resource utilization, and streamlined corporate functions.

The transaction is structured as a simplified absorption-type company split, with Polyplastics as the splitting company and Daicel as the succeeding company. Both companies anticipate satisfying the requirements for simplified and short-form company splits, respectively, meaning no shareholder approval will be required. The board of directors' resolution to approve the policy was made on October 16, 2025, with the absorption-type company split agreement scheduled for January 15, 2026.

As of March 31, 2025, Polyplastics reported net sales of JPY 114,227 million. The total assets and liabilities to be succeeded are estimated at JPY 93,950 million each. Daicel expects the impact of this reorganization on its consolidated business results to be minor.