Mitsui Chemicals Plans Polyolefins Divestiture

With typical attention to detail, Japan's Mitsui Chemicals announced on May 30 a "Notice Regarding Beginning of Consideration of Splitting off Basic & Green Materials Business for Advance Collaboration with Other Companies and Integration and Transformation." In other words, the company is looking to focus more on its specialty chemicals domains (Life & Healthcare Solutions, Mobility Solutions, ICT Solutions) while considering options for tie-ups with similar-minded companies for its Basic & Green Materials (B&GM) business.

The BG&M business includes Phenols, Industrial Chemicals, Sustainable Feedstocks, Licensing, Prime Polymer Co., Ltd. (the affiliate responsible for the company's polyolefins), and Polyurethanes.

Mitsui Chemicals plans to hive off B&GM and establish a new business entity—which will serve as a core in future integration and transformation—by around 2027. The new entity will enable the company to make management decisions that are fast-paced and tailored to the petrochemicals sector, and pursue investments for green chemicals and other projects financed by its own cash flow.

Image: Mitsui Chemicals

What remains?

Mitsui Chemicals' Mobility business includes specialty products such as Tafmer polyolefin elastomers (POEs) used for polypropylene compound impact modification, and composite materials including PP compounds. For this business, the company plans to target local OEMs in China and Europe, offer more products containing recycled materials, and develop white and black compounds that do not require painting.

Mitsui Chemicals' ICT business includes various specialty films for semiconductor and electronic component manufacturing, APEL transparent cyclic olefin copolymer (COC) for mobile phone lenses and pharmaceutical packaging, various battery materials such as Hi-Zex Million UHMWPE for lithium-ion battery separator film, and TUX LLDPE packaging film.

The L&HC business includes ophthalmic lens materials, nonwovens, personal care materials such as acrylamide and synthetic pulp, and insecticides, fungicides, and herbicides.