Mitsubishi Chemical Corporation (MCC)
announces that it will implement business restructuring measures aimed at strengthening MCC’s engineering plastic business, by both transferring half of MCC’s stake in Mitsubishi Engineering-Plastics Corporation (MEP)
, MCC’s equity-method affiliate, to Mitsubishi Gas Chemical Company (MGC) as of April 3, 2023 and acquiring some of MEP’s businesses through absorption-type demerger at the same time.
Increasing Value with Clear Strategy
In line with the management policy "Forging the future," Mitsubishi Chemical Holdings Corporation Group aims to sustainably increase value for all stakeholders under a clear strategy to drive operational excellence and unlock the growth potential of the businesses.
In line with this strategy, MCC is promoting portfolio reforms to further increase the added-value of polybutylene terephthalate business and the specialty polycarbonate business including XANTAR™
, which will be acquired from MEP through the absorption-type demerger.
At the same time, as part of the high-performance polymer business, MCC aims to achieve sustainable growth of the specialty engineering plastic business, centering on key polymerization and compounding technologies, along with the other engineering plastic business, represented by DURABIO™, MCC’s bio-based engineering plastic.
By leveraging MCC’s extensive global network of overseas bases and generating synergies across a wide range of technologies, MCC will further accelerate the business expansion in growth areas such as the electronics, mobility, and medical segments, based on our high-value-added strategy. At the same time, we will take proactive measures to provide new value to achieve carbon neutrality, including the use of sustainable resources and the development of recycling technologies.
Overview of the Transfer
Founded in 1994 as a 50:50 joint venture by MCC and MGC, MEP has developed a robust business network encompassing 27 bases in Japan and overseas while delivering technical services that employ a meticulous, customer-centric approach as well as a broad range of products designed to accommodate customer needs.
Thanks to these efforts, MEP commands more than 10% of the global PC market share and ranks the third as a PC sales company among its peers worldwide.
Based on the aforementioned basic concept, MCC has decided to transfer half of its stake in MEP to MGC as of April 3, 2023. After the share transfer, MCC will hold a 25% stake in MEP, and MEP will become a consolidated subsidiary of MGC.
MEP will continue its business activities as a PC manufacturing and sales company, and the other businesses will be acquired by MCC and the MGC Group respectively through absorption-type demerger.
MCC will acquire MEP’s polybutylene terephthalate business and specialty PC business including XANTAR™, with the aim of strengthening and expanding its businesses.
As a result of this reorganization, MEP will become MGC’s consolidated subsidiary as a specialized PC company, but MCC will continue to play a certain role in the future by maintaining its 25% stake in MEP and undertaking the manufacturing of high-quality PC products at MCC’s Fukuoka Plant under the contract with MEP.
Mitsubishi Engineering-Plastics's Polycarbonate Product Range
Source: Mitsubishi Chemical Corporation