Mitsubishi Gas Chemical Company, Inc. has announced that its Board of Directors passed a resolution at a meeting held yesterday with regard to a decision to transfer MGC’s operations associated with the marketing of and research into polyacetal resins, polyphenylene ether resins, and high-performance polyamide resin compounds, along with its business functions for supervising these operations, to Global Polyacetal Co., Ltd. (GPAC), a wholly owned subsidiary of MGC. This transfer will be executed via the form of a simple absorption-type company split. 

 

In line with a medium-term management plan launched in April 2021, MGC has positioned its operations related to polyacetal resin, or polyoxymethylene (POM), as a “differentiating” business and, therefore, intends to further strengthen competitive advantages of this material. POM serves as an excellent engineering plastic that is highly resistant to abrasion, creep, fatigue and chemicals.

 

It is widely used as a material for automobile parts as well as for electric, electronics and other precision mechanical device components. Accordingly, POM markets worldwide are expected to expand stably in step with growth in each country’s GDP.

 

With this in mind, the MGC Group has maintained POM production bases in Japan (Yokkaichi), Thailand, South Korea and China, striving to expand its relevant operations globally, with the aim of penetrating growing POM markets in these regions. In recent years, the Group has also reorganized POM-related operations in South Korea while executing the cessation of POM production at its Yokkaichi Plant. These moves were taken as part of the Group’s efforts to strengthen the overall competitiveness of its POM-related operations. 

 

The latest decision, described earlier, to unify these operations is intended to further update the Group’s business structure. Specifically, GPAC, a wholly owned subsidiary, will be equipped with functions for supervising POM-related businesses, in line with MGC’s policy of ensuring the integrated management of the Group’s POM production, marketing and development activities.

 

To this end, the Company Split is set to be carried out on April 1, 2022 to transfer MGC’s POM-related operations to GPAC. 

 

Through reorganization measures discussed above, the MGC Group will consolidate its management resources for POM-related businesses to GPAC, which is expected to possess functions for supervising these operations, in order to promote integrated business management for the Group and to create synergies. By doing so, the Group will raise the proportion of high-value-added products in its portfolio while pushing ahead with the development of new products designed to contribute to the environment, the strengthening of its customer response capabilities, and other measures to achieve the further expansion of its POM-related operations.