Three Major Japanese Chemical Giants Officially Announce Polyolefin Business Integration; EU to Boost Plastic Recycling Industry

International News Guide

Raw Material News - Sumitomo Chemical: Signs Agreements on Domestic Polyolefin Business Integration with Prime Polymer et al.

Medical News - Focus on Medical Plastics! Apex Invests USD 31 Million in Capacity Expansion

Automotive News - Auto Parts Giant Adjusts Business, Sells ADAS Business for RMB 14.412 Billion

Additives News - Syensqo’s PFAS-free FFKM Surfactants Power Innores’ Semiconductor Manufacturing

Policy News - Officially Effective on January 1, 2026! EU Adopts Stricter Toy Safety Regulations

Macroeconomic News - China Files WTO Lawsuit Against India’s Tariffs on IT Products and PV Subsidies

Market Price - CNY/USD Central Parity Rate Rises 52 Pips to 7.0771, Hitting a New High Since September 30, 2024

International News Details

1.Sumitomo Chemical: Signs Agreements on Domestic Polyolefin Business Integration with Prime Polymer et al.

As reported by Wind Information on December 24, 2025, Sumitomo Chemical Co., Ltd. announced that on the same day, it entered into a business integration agreement and a joint venture agreement with Prime Polymer Co., Ltd., Mitsui Chemicals, Inc., and Idemitsu Kosan Co., Ltd. The company plans to transfer its domestic polypropylene (PP) and linear low - density polyethylene (LLDPE) businesses to Prime Polymer through a two - phase simplified absorption - type demerger, which will take effect on July 1, 2026 and April 1, 2027 respectively, while acquiring a 20% equity stake in Prime Polymer.

Upon completion of the transaction, Prime Polymer’s equity structure will be 52% held by Mitsui Chemicals, 28% by Idemitsu Kosan, and 20% by Sumitomo Chemical. This integration aims to address the shrinking domestic demand for polyolefins. By optimizing production, the company expects to achieve annual cost savings of over JPY 8 billion, enhance its international competitiveness, and boost its capacity for developing green products.

The first phase will involve the transfer of non - production functions, and the second phase will cover the transfer of production - related assets and liabilities. For the fiscal year ending March 2025, the target business is projected to record operating revenue of JPY 100.366 billion, operating profit of JPY 809 million, and book values of assets and liabilities of JPY 219.9 billion and JPY 712 million respectively.

Sumitomo Chemical stated that the transaction will not have a significant impact on its performance for the fiscal year ending March 2026, and the impact on the fiscal year ending March 2027 is still under evaluation. The transaction is subject to pre - conditions such as anti - monopoly reviews, and the final schedule may be adjusted.

2.Focus on Medical Plastics! Apex Invests USD 31 Million in Capacity Expansion

Apex TransGulf Manufacturing, headquartered in Oman, announced this week that it will add production lines dedicated to manufacturing medical - grade plastic products to expand its production capacity. This family - owned enterprise has a production base in the Salalah Free Zone, mainly engaged in polyethylene packaging materials and plastic wires.

The capacity expansion project has an investment of 19.9 million Omani Rials, equivalent to approximately USD 31 million, and is a crucial part of the newly launched Ladayn Plastic Engineering.

3.Syensqo’s PFAS - free FFKM Surfactants Power Innores’ Semiconductor Manufacturing

Syensqo announced that its innovative Tecnoflon^® FFKM NFS product portfolio has been selected by Innores, a top - tier packaging solution provider in South Korea, for use in semiconductor manufacturing processes. This milestone marks the first commercial adoption of Tecnoflon^® FFKM NFS. The product is renowned for its excellent chemical and plasma resistance as well as outstanding thermal stability, and it does not contain fluorosurfactants from the PFAS family.

Innores is integrating these advanced materials into sealing products, such as O - rings, bonded seals, gate valves, chamber covers, and vacuum pump components, to serve some of the world’s largest semiconductor companies.

4.Auto Parts Giant Adjusts Business, Sells ADAS Business for RMB 14.412 Billion

Harman International announced that it has reached a definitive agreement to acquire the Advanced Driver Assistance Systems (ADAS) business of ZF Friedrichshafen AG of Germany. The transaction is valued at EUR 1.5 billion, equivalent to approximately RMB 14.412 billion based on the current exchange rate, aiming to help Harman expand into the highly competitive automotive electronics sector.

5.Hyundai and Kia Register Slight Sales Growth in Europe in November, with a Combined Market Share of 7.4%



Data released by the European Automobile Manufacturers Association (ACEA) on December 23 shows that Hyundai Motor and Kia sold a total of 99,901 new vehicles in the European market in November 2025, a year - on - year increase of 0.2%. Among them, Hyundai Motor sold 41,066 vehicles, a year - on - year rise of 3.7%, while Kia sold 88,755 vehicles, a year - on - year decrease of 3.2%.

The combined market share of the two brands in Europe stands at 7.4%, a slight drop of 0.2 percentage points compared with the same period last year. Specifically, Hyundai Motor’s flagship models in Europe include the Tucson (8,955 units), Kona (7,990 units), and i20 (4,400 units). For Kia, the Sportage is one of its key models.

6. Prysmian and Versalis Launch Chemical Recycling Chain for Plastic Cable Waste in Italy

Prysmian, a world-renowned cable manufacturer, and Versalis, a chemical subsidiary of Eni, Italy’s energy giant, have signed a strategic partnership agreement aimed at addressing a long-standing waste challenge in the cable industry—the recycling of complex plastic insulation layers in energy cables.

The agreement establishes a closed-loop chemical recycling supply chain that can convert plastic cable waste into new polymers for the production of next-generation cables. With Italy as its base, this project is expected to serve as a potential model for widespread promotion across Europe.

This collaboration comes at a time when regulators and industrial customers are increasingly demanding credible circular economy solutions in the energy infrastructure sector, closely linking Prysmian—one of the world’s largest cable manufacturers—and Versalis, the chemical division of Eni.

7. 3D-Printable: 1:1 Plastic Model of Apple’s First Foldable iPhone Unveiled

Tech media outlet MacWorld published a blog post yesterday (December 23) reporting that MakerWorld user Subsy released a 1:1 plastic model of the "iPhone Fold" (tentative name) on December 21, which is 3D-printable, offering a glimpse of Apple’s first foldable iPhone.

Subsy claims the model is based on CAD design files allegedly leaked from Apple’s own production line. While it is not an exact replica of the final product Apple plans to ship next year (for example, the hinge structure on the model is not from Apple’s design but added by the creator), it provides a "physically hand-holdable" reference, allowing the outside world to preview Apple’s unique design concept for foldable displays in advance.

When fully unfolded, the iPhone Fold has a body ratio and size highly similar to the iPad mini. Compared to the rectangular shape of traditional iPhones, the folded iPhone Fold appears more square.

8. China’s Plastic Imports on the Rise; EU to Boost Plastic Recycling Industry

The European Union unveiled a series of proposals on Tuesday, December 23, aimed at supporting Europe’s plastic recycling industry, which is facing competitive pressure from China and other parts of Asia.

One of the measures proposed by the European Commission is to increase investment in chemical recycling technology. This technology recycles plastics through high-temperature heating. Although it consumes more energy and causes more pollution than mechanical recycling, the EU believes it has unique advantages in processing food packaging plastics such as yogurt cups.

The proposal will also introduce new regulations for identifying the recycled content in single-use PET (polyethylene terephthalate) plastic bottles that can be recycled through chemical processes.

9. Arkema Announces Sale of Plastic Additives Business!

Plastmatch learned that Arkema Group plans to sell part of its impact modifiers and processing aids business to India’s Praana Group. These additives are widely used in the production of PVC profiles, pipes, packaging materials, and engineering plastics.

Through this project, Arkema will continue to refocus its business portfolio on core strategic operations. The business to be divested involves Arkema’s impact modifiers and processing aids segment, including the global business of methyl methacrylate-butadiene-styrene (MBS) copolymers and the European and Asian business of acrylic copolymers (AIMPA).

10. Officially Effective on January 1, 2026! EU Adopts Stricter Toy Safety Regulations

The revised Toy Safety Regulation has been adopted by the European Parliament and the Council of the European Union and will officially enter into force on January 1, 2026. The regulation aims to strengthen the protection of children from harmful chemicals in toys and enhance the enforcement of EU toy safety rules.

Under the regulation, any substance identified as harmful will be prohibited from use in toys. These harmful chemicals include those that interfere with hormones, damage the lungs, cause skin allergies, or harm specific organs. The ban also covers per- and polyfluoroalkyl substances (PFAS) and bisphenols.

The new rules also strengthen existing bans on substances that are potentially carcinogenic, mutagenic, or toxic to reproduction (CMR substances). The regulation will enhance law enforcement through digital tools. All toys placed on the EU market must be equipped with a digital product passport containing safety and compliance information, which consumers can query online via QR codes or other data carriers.

For toys sold online and imported into the EU, customs authorities will be able to inspect the product passport. The new rules will be fully implemented starting from August 1, 2030.

Macroeconomic News

[Foreign Ministry Responds to US Plan to Impose Tariffs on China’s Semiconductor Industry: Firmly Oppose Unjustified Suppression of Chinese Industries]

At a regular press conference held on December 24, Foreign Ministry Spokesperson Lin Jian stated that China firmly opposes the US practice of arbitrarily imposing tariffs and unjustifiably suppressing Chinese industries regarding the US plan to impose tariffs on China’s semiconductor industry starting from 2027. Such US moves disrupt the stability of the global industrial and supply chains, hinder the development of the semiconductor industry worldwide, and harm both others and itself.

[Japan’s Largest Nuclear Power Plant to Restart on January 20 Next Year]

On local time December 24, Tomoaki Kobayakawa, President of Tokyo Electric Power Company (TEPCO), announced that the No. 6 reactor of the Kashiwazaki - Kariwa Nuclear Power Plant will be restarted on January 20 next year. This will be the first reactor of TEPCO to be restarted after the Fukushima Daiichi Nuclear Power Plant accident triggered by the Great East Japan Earthquake on March 11, 2011.

On the same day, TEPCO submitted an “pre - use confirmation” application for the No. 6 reactor of the Kashiwazaki - Kariwa Nuclear Power Plant to the Nuclear Regulation Authority of Japan, which is the final step of equipment inspection.

[ICBC Singapore Branch Launches Innovative Pilot Project for Overseas Top - up of Digital RMB Personal Wallets]

Under the joint guidance of the Digital Currency Research Institute of the People’s Bank of China and the Monetary Authority of Singapore, and with the support of its head office, ICBC Singapore Branch has actively implemented the digital RMB cooperation achievements announced by the China - Singapore Joint Council for Bilateral Cooperation (JCBC) this year, and recently successfully launched an innovative pilot project for overseas top - up of digital RMB personal wallets.

[US Supreme Court Temporarily Blocks Trump Administration’s Deployment of Troops in Chicago]

On December 23, the US Supreme Court made a preliminary ruling that the Trump administration cannot send the National Guard to the Chicago area in Illinois. On the same day, the Supreme Court rejected the Department of Justice’s request to revoke an order issued by a federal judge earlier, which prohibited the Trump administration from deploying hundreds of National Guard members in the Chicago area.

The Supreme Court stated, “At this preliminary stage, the government has failed to identify the source of authority allowing the military to enforce laws in Illinois.”

[State Council Taiwan Affairs Office: As Always, Actively Support Cross - Strait Industrial Cooperation to Help Taiwan - funded Enterprises Develop Better in the Chinese Mainland]

At a regular press conference held on December 24, Peng Qing’en, Spokesperson of the Taiwan Affairs Office of the State Council, stated that the office will, as always, actively support cross - strait industrial cooperation, continuously improve the systems and policies for promoting cross - strait economic and cultural exchanges and cooperation, deepen cross - strait integrated development, help a large number of Taiwan - funded enterprises seize the development opportunities of the 15th Five - Year Plan, and assist them in achieving better development in the Chinese Mainland.

Price Information

CNY/USD Central Parity Rate Rises 52 Pips to 7.0471, Hitting a New High Since September 30, 2024

The CNY/USD central parity rate is quoted at 7.0471, up 52 pips. The central parity rate of the previous trading day was 7.0523, the official closing price of the previous trading day was 7.0287, and the overnight closing price was 7.0280.

USD Market Prices of Upstream Raw Materials

Ethylene: $745/ton (CFR Northeast Asia); $725/ton (CFR Southeast Asia)

Propylene (Northeast Asia): Average $710/ton (FOB South Korea); Average $742/ton (CFR China)

Refrigerated cargo CIF prices (North Asia): Propane $549-$551/ton; Butane $604-$606/ton

Refrigerated cargo CIF prices (South China, early January): Propane $579-$589/ton; Butane $569-$579/ton

Refrigerated cargo CIF prices (Taiwan Region): Propane $549-$551/ton; Butane $604-$606/ton

LLDPE USD Market Prices

Film grade: $730-$745/ton (CFR Huangpu)

Injection grade: $870/ton (CFR Huangpu)

HDPE USD Market Prices

Film grade: $870/ton (CFR Huangpu)

Injection grade: $770/ton (CFR Huangpu)

Hollow grade: $795-$805/ton (CFR Huangpu)

Pipe grade: $1,000/ton (CFR Huangpu)

LDPE USD Market Prices

Film grade: $940-$950/ton (CFR Huangpu)

Coating grade: $1,050-$1,180/ton (CFR Qingdao)

PP USD Market Prices

Injection grade: $770/ton (CFR Huangpu)

Copolymer grade: $830-$855/ton (CFR Nansha)

Film grade: $970-$990/ton (CFR Huangpu)

Transparent grade: $1,090/ton (CFR Dongguan, January arrival)

Pipe grade: $1,100/ton (CFR Shanghai)