Japan's Sumitomo Chemical begins PP, LLDPE split on July 1, 2026 Jul 01, 2026

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Sumitomo Chemical Co., Ltd. said its business integration covering polypropylene (PP) and linear low-density polyethylene (LLDPE) operations in Japan became effective on July 1, 2026, putting the first phase of a planned two-step company split into operation.

Under the arrangement, the target PP and LLDPE businesses are to be transferred to Prime Polymer Co., Ltd., a joint venture of Mitsui Chemicals, Inc. and Idemitsu Kosan Co, Ltd Sumitomo Chemical said it will acquire equity equivalent to a 20 per cent stake in Prime Polymer as part of the integration.

Sumitomo Chemical said in a disclosure that the necessary clearances, regulatory permissions and approvals under competition laws and other relevant regulations had been obtained. The business integration agreement, joint venture agreement and first absorption-type company split agreement became efficiently from July 1, 2026.

The agreements involve Sumitomo Chemical, Prime Polymer, Mitsui Chemicals and Idemitsu Kosan. Sumitomo Chemical said it had announced the business integration and joint venture agreements on December 24, 2025, and entered into the first-phase absorption-type company split agreement with Prime Polymer on April 1, 2026.

Each stage is structured as a simple absorption-type company split. Sumitomo Chemical said each phase is expected to decrease its total assets by less than 10 per cent of net assets as of the end of the immediately preceding fiscal year, and net sales by less than 3 per cent of net sales to that fiscal year.

to sourcing and supply-chain teams tracking PP and LLDPE procurement from Japan, the immediate change is the operating structure to the target businesses. Sumitomo Chemical said approval and summary of the second-phase agreement are planned to January 2027, with the second phase scheduled to take effect on April 1, 2027.

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