Showa Denko KK (SDK) and JX Nippon Oil & Energy Corporation (JX) will acquire LyondellBasell’s stake in their joint venture SunAllomer Ltd, which manufactures polypropylene (PP) and PP-based advanced materials. “SDK Sunrise Investment (SSI), owned by Showa Denko and JX, will purchase LyondellBasell’s 50 percent stake in SunAllomer effective August 31, 2016,” said SDK in a press statement.
After the acquisition, an absorption-type merger of SSI and SunAllomer will take place on November 1, 2016 with SunAllomer as the surviving company. The partnership between SunAllomer and LyondellBasell in various areas, including technology, marketing, and sales, will be maintained as at present.
For SDK and JX, the polypropylene business constitutes a key element in their olefin chains. “Taking this opportunity of acquiring additional shares, the two companies will further strengthen cooperation with SunAllomer, thereby enhancing the competitive power of their polypropylene business,” the company added.
The Tokyo-headquartered SunAllomer Ltd has production capacity of 408 kilo tonne per annum.