MOSCOW (MRC) -- Mitsubishi Chemical Holdings Corp. (MCHC) has announced that the MCHC Group will begin a detailed review of an organizational restructuring with an eye toward the integration of its three chemical operating companies into one company by April 2017, as per Apic-online.
The study, which will determine the feasibility of combining Mitsubishi Chemical Corp., Mitsubishi Plastics Inc. and Mitsubishi Rayon Co., is expected to be completed by the end of March 2016.
"The business climate surrounding the Japanese chemical industry has been changing significantly," MCHC said. "While Japan's domestic economy faces the challenges of a low birthrate, an aging population and declining demand, the group recognizes that emerging nations are showing remarkable economic growth. In addition, changes in the industrial structure are positioned to accelerate rapidly in line with the advance of information and communication technology," the company continued.
MCHC Group's "highest priority in addressing these issues is to strengthen its business foundation to flexibly meet changes in the business climate and fend off fierce competition from European and U.S. chemical companies, which have advantages in scale and earnings, as well as Asian corporate groups that have achieved tremendous development in recent years."
Under these circumstances, the three companies must maintain their competitiveness and achieve further growth by enhancing their integrity and unity on a group-wide basis. They need to integrate their businesses, technology platforms and sales channels to accelerate the growth and globalization of their businesses, MCHC concluded.
As MRC reported earlier, in April 2013, Mitsubishi Chemical has purchased all of the assets related to Comtrex's compounding business. The acquisition of the Comtrex business is expected to help MCC speed up the expansion of its performance polymers business through its networks across the world. Having been engaged in the PVC compounding business for more than 30 years, Comtrex started developing a line of vulcanized thermoplastic elastomers (TPV) in 2000 and selling the product in 2002.
Mitsubishi Chemical with headquarters in Tokyo, Japan, is a diversified chemical company involved in petrochemicals, polymers, agrochemicals, speciality chemicals and pharmaceuticals. The company's main focus is on three business pillars: petrochemicals, performance and functional products, and health care.