Showa Denko & JX Nippon to Buy LyondellBasell’s Stake in Polypropylene JV

26-Aug-16

Showa Denko K.K., JX Nippon Oil & Energy Corporation and LyondellBasell Group have reached final agreement concerning the sale/purchase of LyondellBasell’s shares in SunAllomer Ltd. (SunAllomer), a joint venture company among the three parties for production and sale of polypropylene.

SDK Sunrise Investment (SSI), owned by SDK and JX, will purchase LYB’s 50% stake in SunAllomer effective August 31, 2016. After the acquisition, an absorption-type merger of SSI and SunAllomer will take place on November 1, 2016 with SunAllomer as the surviving company. The partnership between SunAllomer and LYB in various areas, including technology, marketing, and sales, will be maintained as at present. Tokyo-headquartered SunAllomer has total PP capacity of 408,000 tpa producing 281,000 tpa in Oita and 127,000 tpa in Kawasaki. For SDK and JX, the polypropylene business constitutes a key element in their olefin chains. Taking this opportunity of acquiring additional shares, the two companies will further strengthen cooperation with SunAllomer, thereby enhancing the competitive power of their polypropylene business.