Sumitomo moves into PP compounding

Sumitomo Chemical is making a big move into polypropylene compounding, with plans to open a North American plant and through the purchase of existing units in the United Kingdom and France.

The North American operation will be separate from its long-time joint venture with Chevron Phillips Chemical and will operate as a joint venture with Toyo Ink Group. Both Sumitomo and Toyo are based in Tokyo. Sumitomo will own 55 percent of the new venture, which will be called Sumika Polymer Compounds America and will be based in the Atlanta area.

The location of the new plant remains undecided, but it is expected to employ 50 and have annual production capacity of more than 25,000 tonnes.

In Europe, Sumika Polymer Compounds Europe will be formed as a joint venture between Sumitomo, which will own 50 percent; Toyo, 25 percent; and Itochu Group of Tokyo, 25. The unit will be based in Havant, England, and will consist of a 40,000 tonne-capacity plant in Hampshire, England, and a 20,000 tonne-capacity plant in Marseilles, France.

The French plant currently is owned by Japanese conglomerate Asahi Kasei Corp. of Tokyo, while the British plant is a venture between Asahi Kasei and agricultural firm Planesa SA of Guatemala City, Guatemala. Asahi Kasei owns 65 percent of that venture. No purchase price was disclosed in either deal.

In a news release, Sumitomo officials said that PP compounds made at the North American and European sites will be used in auto bumpers and other components.

Sumitomo and Phillips Petroleum formed a PP-making venture in 1994 that now operates as Chevron Phillips Sumika Polypropylene. That unit operates a major PP plant in Pasadena, Texas.