Mitsubishi Chemical Holdings (MCHC) is looking to merge three of its chemical companies by April 2017, to boost competitiveness.
As part of the plan, the company is planning to integrate Mitsubishi Chemical Corporation (MCC), Mitsubishi Plastics (MPI), and Mitsubishi Rayon (MRC) into one company.
MCHC intends to commence a detailed feasibility study in this regard soon, with plans to complete it by the end of March 2016.
“Changes in the industrial structure are positioned to accelerate rapidly in line with the advance of information and communication technology.”
With this integration, the Japanese firm intends to strengthen its capabilities to adapt to rapidly changing business environments, and tackle competition from Asian, European and US chemical companies.
MCHC said in a statement: “While Japan’s domestic economy faces the challenges of a low birthrate, an aging population, and declining demand, the group recognises that emerging nations are showing remarkable economic growth.
“In addition, changes in the industrial structure are positioned to accelerate rapidly in line with the advance of information and communication technology (ICT).”
The proposed integration will provide the businesses with access to various resources, technology platforms, and sales channels to accelerate the growth and globalisation of their operations.
For the fiscal year which ended 31 March, MCHC recorded revenues of JPY3.6trn ($30.4bn), with net income of JPY60.8bn ($507.1m).
The Chiyoda-ku, Tokyo-headquartered company is engaged in electronics applications, designed materials, health care, chemicals, and polymers segments. It has a workforce of 68,263.