Recently, three companies - Mitsui Chemicals, Idemitsu Kosan, and Sumitomo Chemical - jointly announced that they have reached a memorandum of understanding to integrate Prime Polymer Co., Ltd. (PRM), a polyolefin (PO) business company jointly owned by Mitsui Chemicals and Idemitsu Kosan. Although specific details of the current integration method and terms and conditions related to business integration have not yet been finalized, the preliminary plan drafted by the three companies shows that Sumitomo Chemical will transfer its domestic polypropylene (PP) and linear low-density polyethylene (LLDPE) business to PRM while acquiring a 20% stake in PRM.

After completion of this transaction, PRM's shareholding structure will become: Mitsui Chemicals holding 52%, Idemitsu Kosan holding 28%, and Sumitomo Chemical holding 20%. According to the plan, this integration is expected to be officially implemented in April 2026.

After the integration is completed, PRM's business scope will cover polypropylene, linear low-density polyethylene, and high-density polyethylene, with polypropylene annual capacity reaching 1.59 million tons and polyethylene annual capacity of 720,000 tons. Based on 2024 data, the combined net sales of the three companies' related businesses totaled approximately 387.3 billion yen, equivalent to about 18.69 billion yuan.

In Japan's plastics market, polyolefin demand accounts for approximately 50%, widely used in important fields such as automotive manufacturing, electronic materials, and medical equipment, playing an irreplaceable role in Japan's industrial development.

This business reorganization is expected not only to achieve cost optimization of over 8 billion yen annually but also to strengthen the overall competitiveness of Japan's domestic polyolefin business, enhance its ability to compete with imported products, and reduce environmental impact. More critically, through integration, it can effectively alleviate the problem of domestic polyolefin oversupply in Japan and address challenges such as market size reduction and decreased polyolefin demand caused by population decline and changes in residents' lifestyles.

This model of business reorganization through strong alliances to achieve complementary advantages can not only enhance companies' competitiveness in domestic and international markets but also effectively "counter involution" while saving costs and reducing carbon emissions. It is undoubtedly a quality approach worth learning from for related domestic industries.

In addition, PRM will leverage the advantages of its three major investors in the green raw materials field to further enhance its capabilities in research, development, and production of high-performance and environmentally friendly products, accelerating the development of sustainable green chemical business and striving to become the "preferred solution partner in a green society."

Specific measures include the following three aspects:

(1) Green raw material supply: Idemitsu Kosan will provide PRM with bio-based naphtha and waste plastic pyrolysis oil; Mitsui Chemicals and Sumitomo Chemical will introduce imported bio-based naphtha and chemically recycled naphtha to ensure stable supply of green raw materials.

(2) Plastic recycling system construction: Adopting a parallel model of chemical recycling and mechanical recycling, relying on brands like "Meguri®" to promote the construction of a plastic closed-loop circulation system; while increasing research and development efforts for high value-added recycled materials to enhance product premium capabilities.

(3) Low-carbon production technology research and development: Continuously optimizing the energy efficiency of cracking units, actively promoting the application of decarbonization technologies such as ammonia combustion; and cooperating with multiple companies in the region to jointly reduce overall carbon footprint.

In terms of green raw material applications, the three companies will work together to promote the widespread use of green raw materials such as bio-based naphtha and chemically recycled naphtha, while PRM will be mainly responsible for the research, development, and production of bio-based polyolefin and recycled polyolefin products, with products covering multiple key areas including automotive, electronics, medical, and packaging.

Notably, shortly before the announcement of this integration news, on September 1st, Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical had jointly established the limited liability partnership Setouchi Ethylene LLP. This partnership will focus on two ethylene production facilities in western Japan, conducting decarbonization technology research and development and capacity optimization research work, with plans to achieve green transformation in production by 2030.

A free registration conference is coming! The "Hainan Free Trade Port Biodegradable Materials Industry Development Conference" is about to be held.

Conference check-in: September 24th afternoon Conference time: September 25th full day - September 26th morning Conference theme: Biodegradable materials, biomedical materials, 3D printing materials Conference location: Haikou Junzhi Luxury Selection Yate Hotel Conference scale: 200 people

This conference is free of registration fees (including lunch and dinner on the conference day, conference materials, visit vehicles, conference communication group), with transportation and accommodation at your own expense.

Hotel agreement price: 350 yuan (five-star hotel), limited to 2 people per company; registration and promotion hotline: Ms. Hu 18026288257

Data sources: Mitsui Chemicals, Internet