Tokyo - Sumitomo Chemical has reached an agreement to acquire the remaining 40% interest in Japan-based Nihon Oxirane Co. (NOC) from joint venture partner LyondellBasell, giving Sumitomo full ownership.

Sumitomo also plans to end NOC’s styrene monomer (SM), propylene oxide (PO) and propylene glycol (PG) production at Chiba by the end of May 2015.  NOC pro-duces 425,000 t/y of SM, 181,000 t/y of PO and 100,000 t/y of PG.  Once production stops, Sumitomo will manufacture and sell PO from its "PO-only" process plant at Chiba.

The closure of the three units coincides with the earlier announced closure of Sumitomo's 415,000-t/y Chiba Works ethylene plant by September 2015.

"Over recent years, Japan's petrochemical industry has constantly been faced with the difficult business environment due mainly to a decline in domestic demand,” Sumitomo explained.  “To strengthen and sustain its petrochemical business under the circum-stances, Sumitomo Chemical must further step up its efforts of accelerating business structural improve-ments."