Sumitomo Chemical reorganizes agricultural polyolefin films business

25-Jul-2003

Sumitomo Chemical Co., Ltd. has completed transactions to transfer the agricultural polyolefin films (PO agro-film) business of its subsidiary Sumika Plastech Co., Ltd. to another subsidiary Sanzen Kako Co., Ltd., where it was integrated with Sanzen's PO agro-film business. With 20 years of marketing PO agro-film product, KLINTATE ® , Sanzen is the leader in this industry, a position that will be further solidified with today's business transfer and integration.

PO agro-film is used in horticultural farming as an insulative coating material for greenhouses. While polyvinyl chloride films for agricultural use (PVC agro-film) have long been the mainstream material for this application, PO agro-film is enjoying growing demand as the preferred alternative. There are several reasons for this shift to PO agro-film.

To begin with, PO agro-film has evolved to outperform PVC agro-film in transparency, the fundamental performance factor for coating materials, as well as in strength and retaining warmth at night. PO agro-film contains no plasticizers, an essential ingredient and key weakness of PVC agro-film. These plasticizers move to the surface of the vinyl during use, allowing dust in the atmosphere to adhere to the film and resulting in reduced transparency. Plasticizer-free PO agro-film, on the other hand, attracts little dirt and thus offers a longer service life. In addition, PO agro-film is lighter than PVC agro-film, and therefore is superior in its workability. Furthermore, because polyolefins contain no chlorine, there is no concern about generation of dioxins or other toxic substances when disposing of PO agro-film. Rising interest in environmental issues provides even more reason to believe that consumers will continue to switch from PVC agro-film to PO agro-film.

The Sumitomo Chemical group has, until now, managed its PO agro-film business through a close cooperative relationship between Sumika Plastech and Sanzen in manufacture, sales and R&D. However, with nearly 20 companies participating in PO agro-film business, competition remains fierce. In order to further develop this business, it is essential that the Company responds to customer needs promptly, strengthen its research and development capabilities and make continuing efforts to reduce costs. With this business integration, Sumitomo Chemical will streamline organizational elements and services that overlap between the two subsidiaries, while unifying manufacturing, marketing and development functions to promote quick decision-making for the further growth of its PO agro-film business.

https://www.chemeurope.com/en/news/26210/sumitomo-chemical-reorganizes-agricultural-polyolefin-films-business.html