Resonac to Divest Surface Protection Film Business to Sun A. Kaken

Resonac commenced operations of the surface protection film business in 1967 during the era of the former Hitachi Chemical Co., Ltd.. It has since developed, selected, and proposed protective films for various applications such as semiconductor lead frame plating protection, in response to customers' needs.

However, the protective film industry is currently in a mature market phase, and due to recent macroeconomic conditions, rising raw material prices, and energy costs, it has become challenging to foresee significant future growth or synergy with other businesses within the Resonac Group.

As indicated in the Resonac Group's "Long-term Vision for Newly Integrated Company (2021-2030)", Resonac aims to contribute to a sustainable society as a world-class functional chemical manufacturer. To achieve this, they continuously review their business portfolio to pursue sustainable growth. Based on this vision, the company carefully considered all options for the surface protection film business in the context of optimal allocation of management resources and business portfolio management.

Consequently, they determined that expanding the Business under Sun A. Kaken, a domestic plastic film processing manufacturer, would be optimal for its business partners, end consumers who use related products daily, and other stakeholders. Thus, Resonac has decided to proceed with the Transfer.

Overview of the Business Transfer

1. Target business: surface protection film business
2. Objects of transfer: contracts, patent rights, technical know-how, and some equipment (employees are not included)
3. Transfer agreement signing date: August 7, 2024
4. Closing date: November 15, 2024

Overview of the Transferee Company

Company name	Sun A. Kaken Company, Limited
Head office	1-7-4 Nihonbashi Honcho, Chuo-ku, Tokyo
Place of business	Head office
Representative	Takeshi Sakurada, president, representative director
Scope of  business	Manufacturing and sales of packaging-related products, including lightweight packaging materials primarily made from paper, plastic, and metal foil, release paper, base for adhesive tape, and surface protection films.
Capital	2,176 million yen
Establishment	September 2, 1942
Large  shareholders	SHINSEI PULP & PAPER COMPANY LIMITED (17.8%), SHOWA PAXXS CORPORATION (11.8%)

Source: Resonac