Denka Co., Ltd. (Tokyo) said its board of directors approved plans on Nov. 9 to establish Node Chemical Co., Ltd. (Tokyo), a wholly owned subsidiary that will take over the styrene-related businesses of Denka’s Polymer Solutions Division. The new firm is scheduled to be established in December 2026 and begin operations in April 2027, initially handling sales for the businesses under an entrustment agreement from Denka. Around April 2028, Denka plans to complete the spin-off by transferring the businesses to Node Chemical through a simplified absorption-type company split. Denka noted that the plans could change as it works through the required legal procedures.
The businesses involved comprise the manufacture and sale of styrene monomers, performance plastics and sheet products. In the second stage, Denka will transfer its Chiba Plant and the associated sales division to the new company. Denka also plans to spin off its performance plastics manufacturing and sales business in Singapore, in accordance with that country’s laws and regulations, with the transfer to Node Chemical scheduled from July 2028 onward.
Denka said it chose a two-stage approach after weighing the effects on customers, raw material suppliers and employees, along with legal compliance and the steps needed to obtain permits and licenses for the manufacturing facilities. The move follows a Feb. 27 announcement that the company was considering a spin-off targeting April 2027. It is also part of Phase 2 of Denka’s “Mission 2030” management plan, under which the company is pursuing growth in ICT and energy and in healthcare while reshaping its Sustainable Living portfolio.
According to Denka, the spin-off is intended to enable faster, more autonomous decision-making and stronger governance, thereby improving the competitiveness and corporate value of the styrene businesses. The company also said the structure will give it strategic options, including future capital alliances, partnerships such as joint ventures, and an IPO. The approach is similar to the move by Resonac Holdings Corp. (Tokyo) to spin off its wholly owned petrochemical subsidiary, Crasus Chemical Inc.
Node Chemical will have capital of 10 million yen, 1,000 planned shares, a March fiscal year-end and a Tokyo address in the Nihonbashi district. Denka said the name reflects the company’s role as a “node” connecting styrene-based materials, polymer technology and multiple chemical business entities. Because the new company will be wholly owned, Denka expects minimal impact on its consolidated financial results.