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Japanese-owned PP compounding businesses restructured

Three Japanese polypropylene companies have decided to transfer their compounding subsidiaries to group company Japan Polypropylene Corporation (JPP; Tokyo). The PP compounding operations of Mitsubishi Chemical Corporation (Tokyo), Japan Polychem Corporation (Tokyo) and JNC Corporation (Tokyo) will be unified both in Japan and abroad.

JPP is a joint venture of Japan Polychem and JNC Petrochemical Corporation (Tokyo), the latter being a wholly owned subsidiary of JNC. Japan Polychem is a wholly owned subsidiary of Mitsubishi Chemical.

The transfer of PP compounding operations to single entity, subject to regulatory approval, will unify compound distribution networks and consolidate supply to the market of long-fiber compounds produced in Japan, China, and the U.S. PP compounders, meanwhile, are located in China, Thailand, India, the U.S.

The subsidiaries that will be taken over by JPP include PP compounders Mytex Polymers (Jeffersonville, IN), Mytex Polymers (Thailand) Co. (Bangkok), Mytex Polymers India (Gurgaon, India), and Beijing Ju-Ling-Yan Plastic (China), and long-fiber compound manufacturers COMUSA LLC (Covington, GA), JNC Polyfine Asia (Changshu) Co. (China), and JNC Polyfine Co. (Tokyo).

With the expansion of overseas production and sales, the Japanese automobile industry has an increasing demand for stable supplies of materials of consistently high quality irrespective of the region, according to the companies. On the other hand, Mitsubishi Chemical and JPC have been independently engaged in the polypropylene compound business, while JNC has operated its Funcster long-fiber thermoplastic resin business as a standalone entity. This is despite the PP neat resin manufacturing operations of the companies being merged through the establishment of JPP in 2003.

Both the PP compound business and Funcster business are positioned as important strategic businesses for JPP. Through this business integration, JPP is expected to play an important role in expanding the business in line with the growing global market to enable it to act as a global supplier of highly functional materials.

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