Sumitomo Chemical divests shares in Chinese polymer elastomer business

Tokyo – Sumitomo Chemical Co. has 'transferred' all of its shares in its two polypropylene compound business companies in China, including an elastomer production base in Dalian.

Based in Dalian City, Liaoning province, China Sumika Polymer Compounds Dalian was founded in 2011 as a 50/50 joint venture between Sumitomo Chemical and local compounder Zhuhai Sumika Polymer Compounds.

The company manufactures polypropylene and thermoplastic elastomer compounds, primarily used for automotive and household products.

In a statement 18 Dec 2024, Sumitomo Chemical said it had transferred its shares to Chinese plastics compounder Guangzhou Suptech Material Technology Co. as part of a restructuring to improve performance over short term.

The two companies, it said, “are expected to continue to face an increasingly competitive business environment, with other local compounders’ market shares rapidly increasing.”

Guangzhou Suptech Material Technology, stated Sumitomo Chemical, possesses “strong technological capabilities as well as significant growth potential in the Chinese market.”