Mitsui Chemicals has announced a significant shakeup of its wholly owned subsidiary Mitsui Chemicals Tohcello. The Tokyo-based corporation plans to split off Tohcello’s Protective Films business and Industrial Films & Sheets business, both of which are part of the Information and Communication Technology (ICT) business.
A newly created, wholly owned subsidiary will inherit these ICT components, with Mitsui Chemicals Tohcello’s Packaging Solution business excluded from the transition.
In a subsequent move, Mitsui Chemicals Tohcello plans to merge with SunTox, a joint venture between Rengo and Tokuyama. This merger aims to create an integrated company dedicated to the Packaging Solution business.
An equity adjustment is set to follow, involving the transfer of a portion of Mitsui Chemicals’ shares in Mitsui Chemicals Tohcello to Rengo. As a result, Mitsui Chemicals Tohcello will become a subsidiary of Rengo and an equity-method affiliate of Mitsui Chemicals. The latter will retain a management role in the integrated Packaging Solution business.
These changes come as part of Mitsui Chemicals’ broader strategic vision, Vision 2030, which includes developing and expanding a unique ICT Solutions business. This new venture is intended to provide a third pillar of earnings for Mitsui Chemicals, boosting its business portfolio transformation.
The ICT Solutions business is divided into four areas: semiconductor & assembly solutions, imaging solutions, battery material solutions, and converting solutions. The company plans to strengthen each of these areas and align its strategy with a roadmap for semiconductor technologies. The intention is to utilize the collective strength of the Mitsui Chemicals Group to create new businesses and products.
Given the potential for growth and continuous technological innovation in the semiconductor market, the decision to spin off Mitsui Chemicals Tohcello’s ICT business aligns with the strategic aim of fostering agile decision-making and creating synergies within the Mitsui Chemicals Group.
Concerning the Packaging Solution business, Mitsui Chemicals noted the swift change in the plastic packaging materials industry. To adapt to these changes and to implement a strategy for continued growth, the company has sought a partnership with Rengo. This move is based on Rengo’s strong foundation in the flexible packaging materials business, both domestically and overseas.
The decision to merge Mitsui Chemicals Tohcello’s Packaging Solution business with SunTox, a subsidiary of Rengo, reflects a shared vision of creating a high-earning business, accelerating the development of eco-friendly products, and expanding business overseas.
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