DOW Delays German COC New Plant Construction Amid Weak European Demand Outlook

Special Plastics Vision learned on February 11 that Daicel Corporation, a Japanese company, has adjusted the business plan of its consolidated subsidiary, TOPAS Advanced Polymers GmbH, delaying the commissioning of its new cyclic olefin copolymer (COC) plant in Germany. The plant was originally scheduled to begin operations in April 2026 and has now been postponed to the fourth quarter of the fiscal year ending March 2027. The company stated that the delay is due to lower-than-expected market demand growth affected by the EU's Packaging and Packaging Waste Regulation, as well as significant increases in construction and labor costs.

The announcement of this business plan adjustment was made during Daicel's third-quarter earnings release for the fiscal year ending March 2026. For the first nine months of the current fiscal year, the company's net sales were 424.8 billion yen, a decrease of 1.8% year-on-year; operating income was 32.4 billion yen, a decrease of 25.0% year-on-year. Despite the overall decline in performance, Daicel maintained its full-year net sales forecast of 583.0 billion yen.

In another strategic move, Daicel announced the acquisition of all business operations of Polyplastics Co., Ltd. through an absorption-type merger, effective April 1, 2026. This reorganization aims to integrate technical expertise and corporate functions to maximize enterprise value. Furthermore, the company reaffirmed its commitment to continuous shareholder returns, maintaining its annual dividend forecast of 60 yen per share and its share buyback program of up to 15 billion yen.