Sumitomo Chemical to integrate domestic polyolefin business with Prime Polymer

Sumitomo Chemical announced an agreement to integrate its domestic polypropylene (PP) and linear low-density polyethylene (LLDPE) businesses with Prime Polymer, a joint venture of Mitsui Chemicals and Idemitsu Kosan. The integration will occur through a two-stage absorption-type company split, with Sumitomo Chemical acquiring a 20% stake in Prime Polymer for 50,000 yen in common shares. This strategic move aims to optimize production systems, enhance competitiveness, and target over 8 billion yen in annual rationalization.

The first absorption split, transferring non-manufacturing functions of the business, is planned for July 1, 2026. The second split, involving manufacturing assets and liabilities, is expected by April 1, 2027. This phased approach will allow for system integration and is contingent on obtaining necessary regulatory clearances.

For the fiscal year ended March 31, 2025, Sumitomo Chemical reported consolidated sales revenue of 2,606,281 million yen and operating profit of 193,033 million yen. The company's domestic polyolefin business (excluding manufacturing functions) recorded sales revenue of 100,346 million yen and operating profit of 809 million yen for the same period.