Nippon Shokubai + Sanyo Chemicals transforms the combination into Synfomix

On November 29th Nippon Shokubai Co., Ltd. and Sanyo Chemical Industries Co., Ltd. ( Sanyo Chemical Industries, Ltd.) reached an agreement to form a company called Synfomix Co. through a share transfer merger. Ltd.'s integrated holding company. The two sides plan toSynfomixon October 1, 2020 .

japanese media common stock will be converted to 1.225 shares of Synfomix, while Sanyo will be converted to 1:1 of the new company's shares

. Synfomix will become a chemical manufacturer with a global business and multiple strengths by combining the competitive material value chain of Japanese vectors with Sanyo into a customer challenge business. By utilizing the value chains of basic products such as ethylene oxide (EO) and acrylic (AA), the new company's Materials division will completely reduce costs. The ultra-absorbent resin SAP business will aim to improve quality and reduce costs, combining the production technology capabilities and research and development capabilities of the two companies. The new company SAP will have a total production capacity of 1.13 million tons/year and is currently the world's number one, with a share of 28%. The new company's Materials division will produce ethylene oxide, ethylene glycol, ethanolamine, acrylic, acrylic hydroxyl monoid, SAP, Malay anhydride and its derivatives.
the new company's Programme division will be divided into three parts: industrial, personal, energy and electronics business. Among them, the Industrial Business Department mainly focuses on permanent anti-static agents, coating resins, cement adesthase polymers, polymer flocculants, environmental catalysts, automotive foam raw materials, lubricant additives, dispersants / defrosting agents. Personal Business Department provides household detergents, cosmetics substrates/raw materials, medical hemostage inhibitors/reagents. The Energy and Electronics Division offers new lithium batteries, capacitors with electrolytes, batteries with electrolytes, resins for optical materials, spherical particles, corrosion inhibitors and color toner resins.
Japanese media said the chemical industry's business environment has become increasingly difficult in recent years. Japan's demand for chemicals is expected to decline as a result of changes in social structures, including population decline and ageing, which is increasing competition among chemical producers. In emerging countries and economies, demand for chemicals is growing due to rising population and income levels, but the expansion of chemical manufacturers in emerging countries and the widening gap between Japan and large chemical companies in Europe and the United States are undermining the competitiveness of Japanese chemical companies. In view of the growing world population, Sap, one of the core businesses of Japan Media and Sanyo, is expected to continue to grow steadily, with global SAP demand growing at an average annual rate of 4.2% between 2019 and 2024, down from 6% growth in 2014-2019.
According to U.S. Chemical Weekly, Japanese media and Sanyohua combined for the latest fiscal year with sales of 511.3 billion yen ($4.7 billion) and combined operating profit of 39 billion yen, ranking 11th among Japanese chemical companies in combined sales. At present, Japanese media ranked 14th, Sanyo into 20th.
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