DIC Corporation and Covestro Japan Ltd. recently reached an agreement whereby Covestro Japan will raise its stake in joint venture DIC Covestro Polymer Ltd., a leading company in the Japanese thermoplastic polyurethane industry, which was formed in June 2000.

Under the agreement, Covestro Japan will increase its stake in the joint venture by 30 percentage points, to 80%, while DIC’s holding will become 20%. Closing is expected in the second quarter of the fiscal year 2019. This is subject to the approval of the Japan Fair Trade Commission. 

DIC Covestro Polymer offers products such as PANDEX, originally a DIC offering, as well as by importing Desmopan and Texin from Covestro Japan’s parent company, Covestro AG of Germany.
DIC’s decision to transfer a portion of its stake in the joint venture reflects its concurrence with Covestro’s strategy for providing distinctive DIC Covestro Polymer products to a broad range of users through its global network, which encompasses the Americas, Europe and Asia, thereby contributing to organic growth for its overall TPU business.

DIC will continue to support DIC Covestro Polymer in a variety of areas, including by supplying materials, as a key business partner with a robust domestic network and brand strength in multiple businesses. DIC Covestro Polymer will continue to conduct R&D and production at its facility in Sakai, Osaka, which is located within DIC’s Sakai Plant.
 

Photo courtesy Covestro