Notice of Withdrawal from Business of Subsidiary and Recording of Extraordinary Loss
- 2024/03/25 IR News
Sanyo Chemical Industries, Ltd. (“we” or “the Company”) hereby announces that, based on resolutions adopted at the meetings of its Boards of Directors held on March 25, 2024, the Company has resolved to withdraw from the superabsorbent polymer (“SAP”) business and the cease production of surfactants and urethane resin products in Nantong, Jiangsu Province, China (the “Business Withdrawal”) as part of the structural reform under the ” New Medium-Term Management Plan 2025″ initiated in fiscal year 2023.
Based on this resolution, the Company is considering the transfer of all the equity interests of San-Dia Polymers (Nantong) Co., Ltd. (“SDN”), a wholly owned by its consolidated subsidiary SDP Global Co., Ltd. (“SDP”) to another company. The Company has also resolved to dissolve the related consolidated subsidiaries involved in these businesses, SDP, SDP GLOBAL (MALAYSIA) SDN. BHD.(“SDPM”), and Sanyo Kasei (Nantong) Co., Ltd.(“SKN”), as follows. In addition, the Company also announces that it expects to record an extraordinary loss as a result of this Business Withdrawal.
Through the structural reform, including this Business Withdrawal, the Company will focus on growing businesses that contribute to carbon neutrality (CN)and improve quality of life (QOL). By reforming core businesses, developing existing businesses, and creating new growth paths, we aim to achieve an operating profit of 15 billion yen in fiscal year 2025.