Investments: LyondellBasell invests in carbon neutrality venture fund; Mitsui Chemicals to split Mitsui Chemicals Tohcello for new packaging biz

Chemical firm LyondellBasell has invested in a new Carbon Neutrality Fund led by Chrysalix Venture Capital. The fund will support emerging companies developing and deploying new low-carbon technologies, focusing on hard-to-abate sectors, such as the chemicals industry. These investments expand LyondellBasell’s venture capital activities to help advance what it says are its “ambitious” sustainability goals.

In addition to Chrysalix, LyondellBasell has invested in Closed Loop Circular Plastics Fund, Infinity Recycling, and HX Venture. These venture capital funds are focused on accelerating the development of infrastructure and recycling technologies needed to address plastic waste challenges in North America, Europe, and Asia. These investments align with the company’s goal that for every dollar LyondellBasell invests in venture funds addressing critical sustainability challenges, the company helps catalyse another five dollars from co-investors.

“Sustainability is integrated into our business strategy, and we are confident the Carbon Neutrality Fund will help us advance our industry-leading climate goals, as we create value, and develop products and solutions that contribute to a better tomorrow.” said Jim Seward, executive vice president and chief innovation officer at LyondellBasell. “Chrysalix Venture Capital has an established track record of investing in new climate technologies and a strong focus on developing innovative solutions for hard-to-abate sectors, including chemicals.”

“We are pleased to welcome LyondellBasell and other leading international investors to the Carbon Neutrality Fund,” said Fred van Beuningen, Managing Partner at Chrysalix Venture Capital. “Working closely with our Limited Partners, the Fund will connect leading companies with outstanding entrepreneurs, linking market driven problems to innovative solutions while seizing the value creation opportunity of carbon neutrality. Technologies that support carbon neutrality offer a value creation and a new business opportunity, companies with a proactive carbon strategy will create long term sources of differentiation.”

In other news, Japan’s Mitsui Chemicals will set up a new wholly-owned subsidiary to serve as the inheriting company in an absorption-type company split of Mitsui Chemicals Tohcello's ICT business. Mitsui Chemicals Tohcello will absorb Rengo subsidiary SunTox in a merger to form an integrated company for the Packaging Solution business. It is splitting off the Protective Films business and the Industrial Films & Sheets business – which together comprise the ICT business.

SunTox is a joint venture between Rengo and Tokuyama Corporation.

A portion of Mitsui Chemicals’ shares in Mitsui Chemicals Tohcello will then be transferred to Rengo to implement an equity adjustment, making Mitsui Chemicals Tohcello a subsidiary of Rengo and an equity-method affiliate of Mitsui Chemicals. As a shareholder, Mitsui Chemicals will continue to be involved in managing the integrated company for the Packaging Solution business.

Mitsui Chemicals is working to create and expand a unique ICT Solutions business. Aims are to grow operations here into a third pillar of earnings as part of the company’s ongoing business portfolio transformation, which comes as part of its broader Basic Strategy.

The business strategy for Mitsui Chemicals’ ICT Solutions business sees this business split into four areas – semiconductor & assembly solutions, imaging solutions, battery material solutions and converting solutions – and aims to strengthen each of these areas. As a specific effort for semiconductor & assembly solutions, the company is coordinating its strategy to match a roadmap for semiconductor technologies and is aiming to leverage the combined strength of the Mitsui Chemicals Group to create new businesses and products.

Now, in line with that approach – as well as the projections of both medium- to long-term growth and continuous technological innovation in the semiconductor market – Mitsui Chemicals has decided to split off Mitsui Chemicals Tohcello’s ICT business and operate it as an affiliate to help facilitate speedy decision-making and pursue even greater synergies for the Mitsui Chemicals Group.

As for the Packaging Solution business, which accounts for the remainder of Mitsui Chemicals Tohcello, Mitsui Chemicals gave consideration to the rapid change being seen in the business environment surrounding the plastic packaging materials industry.

Against this backdrop, Mitsui Chemicals determined that the best way for Mitsui Chemicals Tohcello’s Packaging Solution business to both respond flexibly to that business environment going forward and implement a strategy for continued growth would be to seek out a collaborative effort with Rengo – which has built up a strong business foundation for flexible packaging materials, including overseas, on the back of active efforts in the sector. Discussions were therefore pursued with both Rengo and Tokuyama.

These discussions led to the conclusion that the best course of action would be to integrate Mitsui Chemicals Tohcello’s Packaging Solution business with the flexible packaging materials business of Rengo subsidiary SunTox.

(PRA)

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