Daicel Corporation decided to proceed with the plan to acquire the entire business  of Polyplastics Co., through an absorption-type company split effective April 1, 2026.

This involves splitting Polyplastics (Japanese company) into the engineering plastics business (including businesses incidental to it and the business of holding and administering the shares of Polyplastics’ subsidiaries and affiliates, with Daicel acquiring  as a whole.

Polyplastics will maintain its juridical personality after the split. Changing the corporate name of Polyplastics, including those of its subsidiaries and affiliates in Japan and overseas, is under consideration. Details regarding the new company names and the timing of the changes will be announced separately at a later date.

In 2020, Daicel made Polyplastics, then a group company, into a wholly-owned subsidiary to transform its group structure to align with its Mid-Term Management Strategy “Accelerate 2025” and further strengthen the engineering plastics business. Subsequently, Daicel has implemented various initiatives to enhance the business by creating synergies, including the adoption of Daicel Production Innovation at Fuji Plant. Decision-making process has become faster as well.

The engineering plastics business has been growing steadily, represented by the start of POM commercial production by DP Engineering Plastics (Nantong) Co., Ltd. (Nantong, China) in November 2024, the start of operations at the LCP polymerization plant by Polyplastics Taiwan Co., Ltd. (Kaohsiung) in February 2025, and the start of the second COC plant by TOPAS Advanced Polymers GmbH (Saxony-Anhalt, Germany) scheduled in April 2026. Moreover, on the business performance front, Polyplastics posted a record profit in the previous fiscal year (Polyplastics Group consolidated basis) in a demonstration of the positive effect of having been converted into Daicel’s wholly-owned subsidiary.

The reorganization of the Daicel Group (Business integration) is based on the standpoint of creating a new Daicel. The integration of the business of Polyplastics into Daicel is aimed at maximizing corporate value through sharing of know-how on the provision of technical services and solutions, areas of Polyplastics’ strength, closer coordination with Daicel’s safety business and materials business, utilization of talent for the growth of the group as a whole, and making corporate functions more efficient, among other measures.