Japanese chemical manufacturing company Sumitomo Bakelite has signed an agreement to acquire 90% of the shares in a new company established by splitting Asahi Kasei Pax’s film business.

The announcement builds on Asahi’s recent decision to liquidate its wholly owned subsidiary Asahi Kasei Pax.

Asahi completed a final agreement on 29 September 2023 to divide its film and container segments.

Asahi said that under this final agreement, the obligations and rights associated with its film business were decided to be given to a new company established via the incorporation-type split.

This new company, named SB Pax, is scheduled to begin operations on 1 April 2024.

Asahi will transfer 90% of the shares of SB Pax to Sumitomo and will continue to own the remaining 10% shares.

The Tokyo-headquartered company Sumitomo said it has acquired Asahi’s film business to contribute to the pharmaceutical packaging market.

Sumitomo will incorporate Asahi’s processing technology to maintain a stable supply and service of pharmaceutical packaging films.

The transaction will also help Sumitomo to further expand its existing films and sheets business.

Asahi's container segment meanwhile, was transferred to RP Topla on 1 October 2023.

This decision was taken after the manufacturing facility of the container business, the Ono Plant in Hyogo Prefecture, Japan, ceased all operations a day earlier on 30 September.

Asahi has also relocated the headquarters of Ashai Pax.

Following the transfer of these container and film businesses, Asahi Kasei will now proceed to liquidate Asahi Kasei Pax.

Asahi said that this liquidation process will be carried out after the dismantling of the Ono Plant is complete.

Established in 1963, Asahi Kasei Pax specialises in the production and sale of laminated plastic film, mainly for the packaging of food and pharmaceutical products.

The company also manufactures plastic moulded containers for beverages and the food industry.