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Sumitomo establishes PP compounds business in Mexico; increases manufacturing capacity in India

| By Mary Bailey

Sumitomo Chemical Co. (Tokyo; www.sumitomo-chem.co.jp)  has decided to further advance the global development of its polypropylene (PP) compound business by establishing a new marketing base in Mexico and providing manufacturing capabilities in India. These moves represent a significant step forward for the Company’s strategic initiatives to strengthen its PP business worldwide. PP compounds are high-performance materials made by kneading synthetic rubber, glass fibers, and inorganic fillers into PP to improve or vary such parameters as impact resistance and functionalities according to target applications.

Sumitomo Chemical is engaged in PP compounds operations at various location around the world, fully leveraging the Company’s distinct strength of wide feedstock availability via a network of PP manufacturing strongholds in Japan, Singapore, and Saudi Arabia, which amount to the production capacity of approximately1.7 million metric tons per year (m.t./yr) in total. Sumitomo Chemical thus far has sold PP compounds in Mexico through its U.S. subsidiary company. In light of rapidly growing automotive production and expecting an unabated strong demand for PP compounds in the years to come, the Company recently established Sumika Polymers Mexico in Guadalajara as a local marketing arm, which began operations in October 2016.

In India, Sumitomo Chemical had set up Sumika Polymer Compounds India in 2013, which has since been selling PP compounds successfully. Given the solid growth of demand, the Indian affiliate’s operation was strengthened with production capabilities newly equipped, and the company held an inauguration ceremony for the production facilities in Chennai in September, 2016.