BERWYN, Pa.--(BUSINESS WIRE)--
Trinseo Holding B.V., a wholly owned subsidiary of Trinseo S.A. (NYSE:
TSE), and Sumitomo Chemical Co., Ltd, have signed a definitive agreement
for Trinseo to sell all of its 50 percent share in their Sumika Styron
Polycarbonate (SSPC) joint venture to Sumitomo Chemical for an
undisclosed price.
Sumika Styron Polycarbonate currently produces polycarbonate resins at
production facilities in Niihama City, Ehime, Japan, and serves
customers and markets throughout Asia. In addition to the sale of
Trinseo’s ownership in the joint venture, the parties have agreed to
continue long-term supply of polycarbonate resin to Trinseo’s
Performance Plastics businesses and as such will maintain the strategic
relationship between SSPC and Trinseo.
“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,” said Tim Stedman, Senior Vice President and Business President
for Basic Plastics and Feedstocks, Trinseo. “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.”
“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 & Plastics Sector has a
broad product portfolio,” said Tomohisa Ohno, Director and Senior
Managing Executive Officer of Sumitomo Chemical.
The transaction is expected to close on January 31, 2017. Terms of the
agreement are not disclosed.
Following the close, it is expected that SSPC will operate as a wholly
owned subsidiary of Sumitomo Chemical. SSPC will continue to operate and
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 Co., Ltd. and The Dow Chemical
Company. After Styron (Trinseo) became an independent company in 2010,
it assumed Dow’s ownership share in the joint venture, which was renamed
Sumika Styron Polycarbonate (SSPC) at that time.
About Trinseo
Trinseo (NYSE: TSE) is a global materials solutions provider and
manufacturer of plastics, latex binders, and synthetic rubber. We are
focused on delivering innovative and sustainable solution to help our
customers create products that touch lives every day — products that are
intrinsic to how we live our lives — across a wide range of end-markets,
including automotive, consumer electronics, appliances, medical devices,
lighting, electrical, carpet, paper and board, building and
construction, and tires. Trinseo had approximately $4.0 billion in
revenue in 2015, with 15 manufacturing sites around the world, and more
than 2,200 employees. For more information visit www.trinseo.com.
About Sumitomo Chemical
Headquartered in Tokyo, Japan, Sumitomo Chemical is one of Japan’s
leading chemical companies, offering a diverse range of products
globally in the fields of petrochemicals, energy and functional
materials, IT-related chemicals and materials, health and crop science
products, and pharmaceuticals. The company’s consolidated net sales for
fiscal 2015 were approximately 2.1 trillion yen, and it has around
31,000 employees. For further information on Sumitomo Chemical, please
visit the corporate website at http://www.sumitomo-chem.co.jp/english.
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Source: Trinseo and Sumitomo Chemical