Tokyo-based Showa Denko K.K. has completed the restructuring of its plastics processing and petrochemicals operations, selling off some businesses while streamlining others.
SDK sold portions of its Hymold Co. Ltd. subsidiary. On July 1, SDK sold Hymold's Gunma, Japan, operations to Toyo Hymold International Pte. Ltd., a subsidiary of Singapore-based Toyo Denka Kogyo Co. Ltd. The Gunma plant makes plastic housings for electric appliances and office automation equipment in China and Taiwan. Toyo will use the plant for product development and production technology for its plastics processing business.
In May, SDK sold the automotive components assets of Hymold to one of the unit's major customers, TS Tech Co. Ltd., an automotive-interior products manufacturer in Asaka, Japan. The deal included the land, buildings and machinery in Kawagoe, Japan.
Meanwhile, the company's Heisei Polymer division exited the straw business and is concentrating on its high-performance product lines, centering on medical and food-packaging film businesses. Heisei Polymer relocated its head office to its Tokyo plant in December to increase efficiency through integration of production and marketing.
In June, SDK's Showa Denko Plastic Products Co. Ltd. in Kochi, Japan, sold its laminated plastic film business at its Oita, Japan, plant to Tokyo-based rubber and plastics products manufacturer Okamoto Industries Inc. Showa Denko Plastic Products now is concentrating on high-value products such as intravenous bags and Pichit moisture-removal sheet for perishable foods.
SDK also has reformed its petrochemicals operations to increase efficiency. Specifically, the firm 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.
SDK said it will make further efforts to increase the competitiveness of its petrochemicals business by achieving the lowest-cost position and growing competitive derivatives operations.
The reform program began in August 2004.