Tokyo -- Tosoh plans to simplify the 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, said Tosoh, which added that the two firms are very closely linked.
Tosoh increased its a stake in Nippon Polyurethane in April 2006
Tosoh took full control in July 2012
Final board approval for the legal incorporation into Tosoh is expected in May 2014, shareholders will vote at the AGM in June 2014 and if that is passed the merger will occur on 1 October 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 two 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, said Tosoh.
If the merger goes ahead, research and development, and other back-office functions will be reorganised; management would be consolidated in Tokyo and Nanyo, the firm added.