Announcement on Consolidation of Group Companies in Plastic Compound Production and Sales

Announcement on Consolidation of Group Companies in Plastic Compound Production and Sales

Announcement Mitsubishi Chemical Group (MCG Group) has announced an important strategic decision to consolidate two of its wholly-owned subsidiaries, RHOMBIC CORPORATION and Dia-Compound Yokkaichi Corporation, into a single entity, effective April 1, 2025. This consolidation will take the form of an absorption-type merger, with RHOMBIC CORPORATION serving as the surviving company in the merger. The move is designed to strengthen the foundation of their plastic compound business by combining the knowledge, technology, and manufacturing capabilities of both companies.

The consolidation represents a significant step in the MCG Group’s ongoing strategy to enhance its position within the plastic compound industry. By consolidating RHOMBIC and Dia-Compound, the group aims to foster further development and sophistication in its manufacturing processes, while optimizing its operations and creating additional synergies between the two subsidiaries.

RHOMBIC CORPORATION, headquartered in Yokkaichi, Mie, Japan, has long been involved in the domestic manufacturing and sales of plastic compound products for the Announcement MCG Group. The company specializes in contract manufacturing of plastic compounds, sales of polypropylene (PP) and polyethylene (PE), as well as the development, manufacturing, and sale of various masterbatches. In addition to these activities, RHOMBIC is also engaged in plastic inspection and analysis, offering services such as quality reviews and assessments of different kinds of plastic products. Furthermore, RHOMBIC manages logistics services, including distribution processing, storage, transportation, and logistics container management, operating across multiple plants such as the Yokkaichi Plant, Kashima Plant, Mizushima Plant, Saitama Plant, Nagoya Plant, and Amaike Plant.

On the other hand, Dia-Compound Yokkaichi Corporation has specialized in the manufacturing and sales of engineering plastic compounds. The company has its head office plant located in Kawajiri-cho, Yokkaichi, and has made significant contributions to the field of engineering plastics, serving as a key player within the MCG Group’s plastic compound sector.

Through the absorption-type merger, the MCG Group seeks to Announcement consolidate the complementary strengths of both companies. By aggregating their expertise in the plastic compound business, the merger will allow the combined entity to enhance its capabilities in the development of high-quality products while improving the efficiency of its operations. Additionally, combining the technology and manufacturing processes from both companies will lead to further sophistication in their business, which is expected to generate better results in terms of both innovation and market competitiveness.

As part of the merger, the new consolidated company, which will Announcement continue to operate under the name RHOMBIC CORPORATION, will benefit from an expanded workforce. The combined number of employees from both companies will be 583 as of December 31, 2024, an increase from RHOMBIC’s original workforce of 525 and Dia-Compound’s 58 employees. This expanded team will be better equipped to meet the growing demands of the plastic compound market and will help to drive the company’s ongoing efforts to improve its product offerings and manufacturing processes.

After the merger, RHOMBIC CORPORATION will maintain its Announcement headquarters at the current location in Yokkaichi, Mie, Japan. The company will also benefit from an expanded manufacturing base, which will now include the additional facilities of Dia-Compound’s Kawajiri Plant. The newly consolidated company will operate across a network of manufacturing bases, including the Yokkaichi Plant, Kashima Plant, Mizushima Plant, Saitama Plant, Nagoya Plant, Amaike Plant, and Kawajiri Plant. This extensive network of plants will enable the company to streamline its production and better serve the diverse needs of its customers in the plastic compound industry.

The merger of RHOMBIC CORPORATION and Dia-Compound Yokkaichi Corporation is in line with the MCG Group’s broader strategy of leveraging the total capabilities Announcement of its subsidiaries to further strengthen its position in the market. The group is committed to consistently providing innovative solutions to its customers, and the consolidation of these two subsidiaries will facilitate the delivery of high-quality plastic compound products and services in a more efficient and effective manner.

Looking ahead, the MCG Group expects the consolidation to drive greater market competitiveness, improve operational efficiency, and foster innovation within the plastic compound sector. By bringing together the strengths of RHOMBIC and Dia-Compound, the group is positioning itself for continued success in a rapidly evolving market. As the industry continues to grow and evolve, the MCG Group is committed to adapting its operations to meet the needs of its customers while driving forward the development of new and advanced plastic compound technologies.

Overall, this consolidation marks a significant milestone for the MCG Group as it seeks to consolidate its position within the plastic compound industry. By combining the Announcement expertise and resources of RHOMBIC CORPORATION and Dia-Compound Yokkaichi Corporation, the MCG Group is not only enhancing its manufacturing and technological capabilities but is also creating a stronger, more competitive organization that is well-positioned for future growth. With this strategic move, the group aims to continue providing high-quality products and solutions to its customers, while fostering innovation and driving advancements in the field of plastic compounds.

In conclusion, the consolidation of RHOMBIC CORPORATION and Dia-Compound Yokkaichi Corporation is a critical step in the MCG Group’s ongoing efforts to strengthen its plastic compound business. This merger, effective April 1, 2025, will result in a more robust and efficient organization that is better equipped to meet the demands of the industry and deliver innovative solutions to its customers.Announcement With this move, the MCG Group is positioning itself for continued success in the rapidly evolving plastic compound market.

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