MITSUBISHI PLASTICS
Sekisui Plastics to acquire piping business / Agreement results from production partnership established in 2002
Japanese plastics producer Sekisui Plastics (Tokyo; www.sekisuiplastics.com) is to acquire the piping business of Mitsubishi Plastics (Tokyo; www.mpi.co.jp/english). The deal is expected to be concluded by the end of 2012 and will make Sekisui Japan’s largest manufacturer of PVC piping. Prior to the acquisition Sekisui was the second largest producer of PVC piping in the country, with Mitsubishi in third position.
Mitsubishi Plastics entered a partnership with Sekisui in 2002 to rebuild its piping business, established in 1952, which had been adversely affected by a slowdown in new housing starts and lower public investment projects. The joint investment established an integrated production company to standardise product specifications and share production bases and distribution systems. Mitsubishi said it judged that combining the two companies’ piping business operations through the acquisition is the best means for a stable supply to the market and future development of Sekisui’s piping business.
Sekisui said the acquisition will reinforce the business base of the company and accelerate its “integrated power development” and “value chain business expansion”, to aim towards becoming a leading company in the urban infrastructure business. It expects operating rates at its plants to increase by around 15% as a result of the purchase. It added that the deal had been agreed “based on the necessity to further boost operational efficiency and added value in response to expected changes in the market environment and competition with other companies throughout the world in the future.”
Under the agreement, Mitsui will transfer personnel, assets, agreements, intellectual property and some machinery associated with its piping business, other than the cross-linked PE piping business, and of three subsidiary companies – Mitsubishi Plastics Marketing, Ryoju and Ryobi Techno. It will also transfer the shares it owns in piping-related companies Toyo Plastics Industries, Hanyu Plastics Industries, Wuxi SSS Diamond Plastics and M&S Pipe Systems.
Mitsubishi Plastics entered a partnership with Sekisui in 2002 to rebuild its piping business, established in 1952, which had been adversely affected by a slowdown in new housing starts and lower public investment projects. The joint investment established an integrated production company to standardise product specifications and share production bases and distribution systems. Mitsubishi said it judged that combining the two companies’ piping business operations through the acquisition is the best means for a stable supply to the market and future development of Sekisui’s piping business.
Sekisui said the acquisition will reinforce the business base of the company and accelerate its “integrated power development” and “value chain business expansion”, to aim towards becoming a leading company in the urban infrastructure business. It expects operating rates at its plants to increase by around 15% as a result of the purchase. It added that the deal had been agreed “based on the necessity to further boost operational efficiency and added value in response to expected changes in the market environment and competition with other companies throughout the world in the future.”
Under the agreement, Mitsui will transfer personnel, assets, agreements, intellectual property and some machinery associated with its piping business, other than the cross-linked PE piping business, and of three subsidiary companies – Mitsubishi Plastics Marketing, Ryoju and Ryobi Techno. It will also transfer the shares it owns in piping-related companies Toyo Plastics Industries, Hanyu Plastics Industries, Wuxi SSS Diamond Plastics and M&S Pipe Systems.
20.07.2012 Plasteurope.com [222893-0]
Published on 20.07.2012
German version of this article...