The overall restructuring of Showa Denko's (SDK) petrochemicals businesses is complete with structural reforms of SDK's plastic processing businesses in accordance with the Sprout Project. SDK makes petrochemicals (ethylene, propylene) in Korea and has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylene. SDK has strengthened the cost-competitive position of its Oita Petrochemical Complex, expanded its acetyls business by starting overseas production and forming alliances, and restructured its polyolefins business through alliances. Three of its subsidiaries that are engaged in the plastic processing businesses have been re-modified in the following manner:
Hymold Co.Ltd.
3 SDK subsidiaries merged in 1997 to form Hymold for plastic processing. Molded end products found application as automotive parts at its Kawagoe Plant and housings for electric appliances/OA equipment at its Gunma Plant.
Earlier this year, Hymold sold the assets at the Kawagoe Plant, including the land, buildings and machinery, to TS Tech Co. Ltd. its major customer.
On July 1, SDK sold its shares in Hymold to Toyo Hymold International Pte. Ltd. (THI) - a subsidiary in Singapore of Toyo Denka Kogyo Co., Ltd. THI is in the plastic housings business for electric appliances / OA equipment in Southeast Asian countries, China and Taiwan. THI will fully utilize the assets at the Gunma Plant, including the land, buildings and machinery, as well as the plant's expertise in product development and production technology. THI has also taken over Hymold's straw business at Gunma, which within the SDK Group was consolidated at Hymold in April this year.
Heisei Polymer Co.Ltd.
To increase efficiency through integration of production and marketing, Heisei Polymer relocated its head office its Ibaragi Plant site in December 2004. After the transfer of its straw production at the Ibaragi Plant to Hymold, Heisei Polymer is concentrating on its high-performance product lines, particularly medical and food packaging film businesses.
Showa Denko Plastic Products Co. Ltd.
SPP transferred its laminated film (cast PP film) business at its Oita Plant to Okamoto Industries, Inc. and its straw business to Hymold in April. SPP will now focus on such high-value products as intravenous bags and Pichit moisture removal sheet for perishable foods.
With the latest moves for structural reform of plastic processing businesses, SDK has completed the overall restructuring of its petrochemicals operations, and in future will concentrate on increasing the competitiveness of its petrochemicals business by achieving the lowest-cost position and growing competitive derivatives operations.
05-Jul-05 
