Showa Denko (SDK, Tokyo / Japan; www.sdk.co.jp) and JX Nippon Oil & Energy (Tokyo; www.noe.jx-group.co.jp) have reached a final agreement with LyondellBasell Industries (LBI, Houston, Texas / USA; www.lyondellbasell.com) under the terms of which the two Japanese companies will acquire the latter’s 50% stake in their common SunAllomer (Tokyo; www.sunallomer.co.jp) joint venture. Financial details of the deal, which is due to take effect on 31 August, were not disclosed.
The Japanese groups will acquire sole control of the PP manufacturer through their common investment vehicle, SDK Sunrise Investment (SSI). On 1 November 2016, the latter will be merged with SunAllomer, and cease to exist. As a result, SDK will own a 65% share in the PP producer, and JX the remaining 35%. The takeover will not affect SunAllomer’s collaboration with LBI, including technology, marketing and sales activities.
The three companies first set up the jv in the 1990s, when it was known as Montell-JPO. A look at PIE’s Polyglobe capacity database (www.polyglobe.net) shows that SunAllomer has total PP capacity for 408,000 t/y, spread across two sites in Oita and Kawasaki. The jv also runs a 50,000 t/y PP compounding plant in Oita.
