Mitsui, Idemitsu, and Sumitomo plan to integrate PP and LLDPE businesses into PRM, boosting competitiveness and sustainability in Japan.
Mitsui Chemicals, Inc., Idemitsu Kosan Co., Ltd., and Sumitomo Chemical Co., Ltd. have jointly announced the signing of a Memorandum of Understanding (MOU) regarding the integration of Sumitomo Chemical’s polypropylene (PP) and linear low-density polyethylene (LLDPE) businesses in Japan into Prime Polymer Co., Ltd. (PRM), a joint venture currently operated by Mitsui and Idemitsu. This proposed integration, referred to as the “Business Integration,” aims to enhance the competitiveness of Japan’s domestic polyolefin (PO) sector.
Through extensive discussions, Mitsui, Idemitsu, and Sumitomo Chemical have identified opportunities for strategic collaboration to strengthen the domestic PP and polyethylene (PE) markets. The integration will combine PRM’s established operations with Sumitomo Chemical’s PP and LLDPE businesses (collectively, the “Sumitomo Target Business”), creating a more resilient and efficient domestic PO business. Implementation of this Business Integration remains subject to regulatory approvals and compliance with competition laws in Japan, and the companies will continue consultations toward finalizing a definitive agreement.
Polyolefins, which account for roughly 50% of total plastics demand in Japan, are critical materials used across automotive, electronics, medical, and other industrial applications. Despite several mergers and consolidations among domestic PO producers since the 1990s, oversupply challenges remain. Moreover, Japan’s shrinking population and evolving lifestyle patterns are expected to reduce demand for domestically produced polyolefins in the future, necessitating structural improvements within the industry.
Since its establishment in 2005, PRM has been a key player in Japan’s polyolefin market, producing polypropylene and polyethylene products such as LLDPE and high-density polyethylene (HDPE). By integrating Sumitomo Chemical’s PP and LLDPE operations into PRM, the three companies aim to reinforce the domestic PO business while improving competitiveness against imported polyolefins. The Business Integration is anticipated to generate significant synergies, particularly in production efficiencies and technological advancements for environmentally sustainable materials. Both PRM and Sumitomo Chemical have production facilities in Japan’s Keiyo region, providing a solid foundation for operational consolidation and innovation.
The integration will enable Mitsui, Idemitsu, and Sumitomo Chemical to optimize the domestic PO production network, targeting cost rationalizations exceeding 8 billion yen annually. Beyond cost efficiencies, the collaboration is expected to accelerate the development of high-performance, environmentally conscious polyolefin products, advancing the companies’ shared vision of a sustainable green chemical business.
While the precise structure and terms of the integration are still under consideration, one proposed approach involves Sumitomo Chemical transferring its PP and LLDPE businesses to PRM, in return acquiring a 20% equity stake in PRM. The final agreement will be determined through continued discussions among Mitsui, Idemitsu, and Sumitomo Chemical, with the aim of establishing a robust and competitive domestic polyolefin business.
