Japanese chemical giant withdraws, Sinopec makes acquisition!
author: Ann
2025-07-14
Giants withdraw: stop loss
Tianyancha information shows that Shanghai Sinopec Mitsui Chemicals Co., Ltd. (SSMC) is jointly held by Japan's Mitsui Chemicals Co., Ltd. and Shanghai Gaoqiao Petrochemical Co., Ltd., with each party holding 50% of the shares.
The company was established in 2006 and underwent shareholder adjustments in 2016. Sinopec withdrew and Shanghai Gaoqiao Petrochemical, a subsidiary of Sinopec, took over as a shareholder.
As a basic chemical production enterprise, SSMC's core products include phenol, acetone and bisphenol A. It currently has a 120,000 tons/year bisphenol A unit and a second-phase annual production capacity of 250,000 tons of phenol and 150,000 tons of acetone.
However, the operating conditions of this joint venture have continued to be under pressure in recent years. Data show that SSMC's losses in fiscal 2024 amounted to 10.6 billion yen. This is the second consecutive fiscal year that it has fallen into losses.
As for the reasons for the losses, Mitsui Chemicals clearly attributed the "deterioration of profitability" to "increased chemical production in China."
In recent years, the production capacity of the phenol/acetone market has expanded sharply. China's phenol production capacity is expected to exceed 8 million tons in 2025.
Severe overcapacity has triggered fierce market competition. This change is directly reflected in the price: the spot price of phenol in East China has plummeted from 12,000 yuan/ton to 6,500 yuan/ton, which has fallen below the cost line.
SSMC's financial report data is a true reflection of this market situation. It is worth noting that Mitsui Chemicals' transfer of SSMC's equity is not an isolated business adjustment, but part of its continuous optimization of its business strategy in recent years.
In 2023, Mitsui Chemicals will transfer all shares of a company operating a phenol business in Singapore; in 2024, it announced that it would close the 190,000-ton phenol plant in Chiba City by fiscal 2026 at the latest; just last month, Mitsui Chemicals also revealed that it has started to split the basic and green materials business that mainly engages in petrochemical products.
For this series of actions, Mitsui Chemicals said it aims to optimize resource allocation so that it can focus on developing core businesses and respond to market challenges.
For example, many of its high-refractive index lens materials have long been used as raw materials for world-renowned lens manufacturers, which belongs to the high value-added field.
It can be foreseen that Mitsui Chemicals may further focus on such high value-added businesses in the future to meet industry challenges.
Tianyancha information shows that Shanghai Sinopec Mitsui Chemicals Co., Ltd. (SSMC) is jointly held by Japan's Mitsui Chemicals Co., Ltd. and Shanghai Gaoqiao Petrochemical Co., Ltd., with each party holding 50% of the shares.
The company was established in 2006 and underwent shareholder adjustments in 2016. Sinopec withdrew and Shanghai Gaoqiao Petrochemical, a subsidiary of Sinopec, took over as a shareholder.
As a basic chemical production enterprise, SSMC's core products include phenol, acetone and bisphenol A. It currently has a 120,000 tons/year bisphenol A unit and a second-phase annual production capacity of 250,000 tons of phenol and 150,000 tons of acetone.
However, the operating conditions of this joint venture have continued to be under pressure in recent years. Data show that SSMC's losses in fiscal 2024 amounted to 10.6 billion yen. This is the second consecutive fiscal year that it has fallen into losses.
As for the reasons for the losses, Mitsui Chemicals clearly attributed the "deterioration of profitability" to "increased chemical production in China."
In recent years, the production capacity of the phenol/acetone market has expanded sharply. China's phenol production capacity is expected to exceed 8 million tons in 2025.
Severe overcapacity has triggered fierce market competition. This change is directly reflected in the price: the spot price of phenol in East China has plummeted from 12,000 yuan/ton to 6,500 yuan/ton, which has fallen below the cost line.
SSMC's financial report data is a true reflection of this market situation. It is worth noting that Mitsui Chemicals' transfer of SSMC's equity is not an isolated business adjustment, but part of its continuous optimization of its business strategy in recent years.
In 2023, Mitsui Chemicals will transfer all shares of a company operating a phenol business in Singapore; in 2024, it announced that it would close the 190,000-ton phenol plant in Chiba City by fiscal 2026 at the latest; just last month, Mitsui Chemicals also revealed that it has started to split the basic and green materials business that mainly engages in petrochemical products.
For this series of actions, Mitsui Chemicals said it aims to optimize resource allocation so that it can focus on developing core businesses and respond to market challenges.
For example, many of its high-refractive index lens materials have long been used as raw materials for world-renowned lens manufacturers, which belongs to the high value-added field.
It can be foreseen that Mitsui Chemicals may further focus on such high value-added businesses in the future to meet industry challenges.
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الفرق بين الكالسيوم و الليثيوم الشحوم الشحوم
