Ube, JSR and Mitsubishi Rayon create ABS business

Stating that the business conditions surrounding the ABS resin business are becoming increasingly challenging both in and outside of Japan, Ube Industries, JSR Corporation, and Mitsubishi Rayon Co., are integrating the ABS resin business of Techno Polymer Co., a wholly-owned subsidiary of JSR, and UMG ABS. It is equally owned by Ube Industries (50%) and Mitsubishi Rayon (50%). The purpose of the integration, the companies say, is to optimise operations, enhance manufacturing efficiencies, and secure cost competitiveness for the ABS resin business, in order to secure the stable supply of products in Japan and expand sales in global markets.

The integrated new company will be effective in October.

The integration will take the form of an absorption-type split, with UMG ABS as the absorbed company and Techno Polymer as the successor company. The entire business of UMG ABS will be absorbed, with UMG ABS receiving some of the shares of Techno Polymer in kind. After the absorption-type split, Techno Polymer will remain as a subsidiary of JSR. UMG will be equally owned by UBE (50%) and MRC (50%) as before.