Tosoh plans merger with Nippon Polyurethane

Tosoh Corporation’s Board of Directors has agreed to examine and prepare the company for a merger with its wholly owned subsidiary Nippon Polyurethane Industry Co Ltd (NPU). NPU makes and sells polyurethane raw materials and its isocyanate operations are integral to Tosoh’s fully integrated vinyl chain operations. The merger consolidates the two companies’ synergies under a single management base for better, more flexible responses to a changing isocyanate operating environment. October 1, 2014, is tentatively the date of the merger.
 
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Unified management will heighten efficiencies in the integrated supply structure between NPU and Tosoh. Tosoh’s Nanyo Complex supplies utilities and the isocyanate raw materials aniline, carbon monoxide, and chlorine to NPU. NPU’s downstream processes generate hydrogen chloride that NPU furnishes to Tosoh as a raw material for vinyl chloride monomer. Recovering and utilising resources has raised operational competitiveness at NPU and Tosoh, and the merger will increase it further. Management will be consolidated at Tosoh headquarters and the Nanyo Complex.