Mitsubishi Chemical Exits! Sumitomo Acquires!

As one of the key players in the global high-end chemical new materials industry, every move made by Japanese chemical giants attracts significant attention from chemical companies worldwide. They are not only strong competitors in the premium market but also valuable models to learn from. In the first half of 2025, Japanese giants made a big splash, and as the second half of 2025 begins, they are making new moves again.

The first one,Mitsubishi Chemical，On July 25th, it was announced that a decision has been made to exit the polyester resin manufacturing business for printer toner, which has been in operation for 36 years.DiacronTM is scheduled to cease production by March 31, 2026, and sales will stop by June 30, 2026.The technical core of this product lies in enhancing performance through cross-linking agents, and it is gradually expanding into applications with bio-based materials.

The reason is that the shift towards paperless operations and changes in remote work patterns after the COVID-19 pandemic have led to a decline in printing demand. In addition, the recent sharp rise in raw material prices and increased labor costs have put enormous pressure on the profitability of this business. Although the company has takenSimplifying operations and reducing fixed costs, but not optimistic about the future.

In fact, in September last year, Mitsui Chemicals decided to exit from styrene acrylic resins used for toner binders.ALMATEX™) and polyester resin (ALMASTAR™The business is expected to cease production in the first half of fiscal year 2025. The reasons are similar to those of Mitsubishi Chemical, and it is also mentioned that rising raw material prices and intense competition both domestically and internationally are contributing factors.

The second oneSumitomo Bakelite，On July 22, an agreement was reached with Japan's AGC Inc. to acquire its polycarbonate business.

AGC's polycarbonate business has a development history of over 30 years, with products widely covering key industries such as construction materials, industrial applications, and electronics. Its flagship products include TWINCARBO™ and polycarbonate sheets for optical applications.

As AGC stated, the transfer of the two major core businesses will not only allow Sumitomo Bakelite to efficiently utilize polycarbonate assets by leveraging its advanced technologies in related fields, but will also help AGC focus on its core business.

The data shows that the predecessor of AGC isAsahi Glass Co., Ltd., established in 1907, is a world-leading manufacturer of glass, chemicals, and high-tech materials. Its products cover the entire industry chain of front windshields, car windows, and display cover glass. It is the world's number one company in terms of market share for glass products.

Sumitomo BakeliteThe company, originally Japan's first producer of phenolic resin, is now a world-renowned supplier of semiconductor encapsulation materials and resin products. It holds approximately 40% of the global market share for epoxy molding compounds, ranking first worldwide. The company's global production capacity is concentrated in Japan, China, and Singapore. In 2024, its new core facility in Suzhou will commence operations, with an annual production capacity reaching 33,000 tons, which is 1.5 times greater than that of the existing plant. Additionally,Nantong Sumitomo Bakelite Annual ProductionThe technological transformation project for 22,500 tons of phenolic resin, 1,800 tons of liquid epoxy resin, and 6,203 tons of multi-layer multifunctional composite film will also commence trial production in August 2024.

Regarding epoxy encapsulation, which is also a highly popular electronic material, there was an exciting corporate acquisition case in China last year. You can click to read: After the failed acquisition of epoxy encapsulation, Debang Technology makes another move to acquire another semiconductor material company.