Sanyo Chemical Industries, Ltd. exits the diaper resin business

Sanyo Chemical Industries SAP has a total production capacity of 420000 tons/year, ranking 6th in global market share. But currently, the total production capacity is 310000 tons, a decrease of about 25%. Sanyo Chemical Industries will dissolve its two production subsidiaries in Japan and Malaysia, and consider selling a company that produces SAP in China to a local chemical manufacturer. Meanwhile, a Chinese subsidiary producing polyurethane materials and surfactants will also be dissolved.

SAP's sales for this fiscal year were approximately 30 billion yen, accounting for 20% of the total sales. The operating loss of various businesses is about 1.8 billion yen, and the operating situation continues to be sluggish.

SAP's global supply has become oversupplied, and the gap with Chinese products in terms of water absorption speed and other functions is also narrowing. Diaper manufacturers typically purchase raw materials from multiple companies, so exiting this business will not have a significant impact on their business partners. Analysis indicates that there has been an increase in demand for baby's diapers in India and other countries, as well as for adult diapers in China and other countries.

Sanyo Chemical Industries stated that the Nagoya factory in Japan, which produces SAP, will produce sufficient inventory before customers switch suppliers and complete operations in the first half of the fiscal year ending in March 2025. The production of SAP factory in Malaysia has ended. Its human resources and funds will be allocated to high value-added areas such as healthcare.

Reference from

Nihon Keizai Shimbun