TOKYO—Tosoh Corp. plans to simplify ownership of its subsidiary Nippon Polyurethane Industry Co. Ltd. by incorporating it fully into the Tosoh legal entity, the firm said in a statement.
Nippon Polyurethane Industry makes and sells polyurethane raw materials.
Tosoh increased its a stake in Nippon Polyurethane in April 2006 to 51 percent with the purchase of 35 percent owned by Hodogaya Chemical Co. Ltd. Tosoh said it increased this to 80.28 percent in May 2008. Tosoh took full control in July 2012. At the time, Tosoh said it was urgent for NPU to return to profitability.
Final board approval for the legal incorporation into Tosoh is expected in May 2014, shareholders will vote in June 2014, and if that is passed, the merger will occur on Oct. 1 2014, said Tosoh. The firm added that at that point, the Japan Polyurethane Industry name would disappear.
Unified management will improve efficiencies in the integrated supply structure between the firms' production, which is based in Nanyo, Japan. Tosoh supplies utilities and isocyanates to NPU at the site. NPU's downstream operations generate hydrogen chloride, which Tosoh uses to make vinyl chloride monomer.
If the merger goes ahead, research and development and other back-office functions will be reorganized; management would be consolidated in Tokyo and Nanyo, the firm added.