Sumitomo Chemical announces exit from dye business

Japan's century-old chemical giant Sumitomo Chemical accelerated the pace of transformation and announced its withdrawal from the three traditional chemical businesses of ethylene-propylene rubber, caprolactam and dyes in less than a ye.

On May 19, Sumitomo Chemical announced its decision to close the dye production facility at the Osaka plant by the end of March 2023 and exit the dye busine.

Nippon Dyestuff Manufacturing Company was established in 1916 to produce synthetic dyes and merged with Sumitomo Chemical in 1944 to become Sumitomo Chemical's Osaka Pla.

Under the increasingly severe market environment for dyestuffs, Sumitomo Chemical has been striving to carry out business structural reforms, such as increasing the added value of products, optimizing product lines, and reducing costs in an all-round w.

Sumitomo Chemical said that it will continue to invest resources in areas where the company has a competitive advantage, and strive to achieve sustainable growth through the creation of new val.

According to the data, Sumitomo Chemical originated from a fertilizer plant established in Niihama, Ehime Prefecture, Japan in 1913, with a history of 109 yea.

In September 2021, Sumitomo Chemical announced that it will stop the production of 40,000 tons/year ethylene-propylene rubber (EPDM) at its Chiba plant, and terminate sales at the end of March 202

Sumitomo Chemical said that the company has been committed to enhancing the competitiveness of its business by increasing the added value of ethylene-propylene rubber products and reducing cos.

On April 15, 2022, Sumitomo Chemical announced that it has decided to withdraw from the caprolactam business and will close its production facility in Ehime, Japan by October 202

Sumitomo Chemical believes that in recent years, the increase in global caprolactam production facilities, especially the surge in production capacity in China, has led to the deterioration of Sumitomo Chemical's profitabili.

According to Sumitomo Chemical's mid-term business plan for 2022-2024, the company will strengthen the profitability of technology-based businesses and promote the metabolism of businesses in growth marke.

In recent years, Japan's chemical industry is accelerating its structural transformation, and exiting the traditional petrochemical business has become one of the main optio.