Trinseo to sell 50% stake in Sumika Styron Polycarbonate JV to Sumitomo Chemical
Trinseo Holding has signed a definitive agreement to sell all of its 50% share in Sumika Styron Polycarbonate (SSPC) joint venture to Japan-based Sumitomo Chemical for an undisclosed price.
Financial details of the deal have not been disclosed.
Sumika Styron Polycarbonate produces polycarbonate resins at production facilities in Niihama City, Ehime, Japan, and serves markets across Asia.
In addition to the sale of Trinseo’s ownership in the JV, the companies have agreed to continue long-term supply of polycarbonate resin to Trinseo’s Performance Plastics business and maintain the strategic relationship between SSPC and Trinseo.
Trinseo senior vice-president and business president for basic plastics and feedstocks Tim Stedman said: “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.
“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.”
Sumitomo Chemical director and senior managing executive officer Tomohisa Ohno said: “We highly appreciate the long-term relationship with Trinseo and respect the decision by them. We will explore opportunities of further expanding polycarbonate business by leveraging technical capabilities we have developed long time, as petrochemicals and plastics Sector has a broad product portfolio.”
The deal is expected to close on 31 January. After completion, SSPC will operate as a completely owned subsidiary of Sumitomo Chemical.
SSPC will be renamed Sumika Polycarbonate Limited after a transitional period.
SSPC was originally formed as Sumitomo Dow Limited in 1996 as a 50:50 joint venture between Sumitomo Chemical and The Dow Chemical Company.
After Styron (Trinseo) became an independent company in 2010, it acquired Dow’s ownership share in the JV, which was then renamed Sumika Styron Polycarbonate (SSPC).