EHIME, JAPAN-Sumitomo Chemical Co. and Dow Chemical Co. dissolved a joint venture at the end of 1995 that had been producing ABS resin. Now, Sumitomo alone operates the business. Sumitomo Dow will be reinvented as a new company producing polycarbonate. A plant in Ehime produces 88 million pounds of PC a year.
Sumitomo Dow will expand production, domestic sales and exports.
Sumitomo and Dow's petrochemical divisions will strengthen ties in technology as well as cooperate in the opening of new markets.
The two firms cited foreign exchange rates and heightened competition as the primary reason that the ABS venture was unsuccessful.
In Singapore, Sumitomo Chemical Co. and Royal Dutch Shell jointly operate a major petrochemical complex. The two firms said they now plan to invest an additional $2.2 billion to produce polypropylene and polyethylene, starting in 1997.