Sumitomo exit from Chiba styrene monomer joint venture

Sumitomo to exit from Chiba styrene monomer joint venture

9:35 PM, 12th January 2012
Sumitomo to exit from Chiba styrene monomer joint venture

TOKYO, JAPAN: Sumitomo Chemical Co said that it will withdraw from its styrene monomer production joint venture with Denki Kagaku Kogyo Kabushiki Kaisha (Denka) in late April. Denki Kagaku Kogyo will buy Sumitomo’s entire 40 per cent equity stake in the joint firm, Chiba Styrene Monomer Ltd, to make the company its fully owned unit. Chiba Styrene Monomer operates in a petrochemical complex in Chiba having an annual production capacity of 270,000 tonne.

Denki Kagaku Kogyo said that it will scrap its own styrene monomer facility with an annual capacity of 240,000 tonne in late April and focus on the operations of Chiba Styrene Monomer. Sumitomo Chemical made the decision, finding it difficult to profit from styrene monomer exports amid growing competition in China and the Middle East, and the continued appreciation of yen. After the exit from the joint venture, Sumitomo Chemical plans to concentrate its styrene monomer business at subsidiary Nihon Oxirane, reducing exports.

© Jiji Press

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