Japan Composite decided to acquire the sheet molding compound (SMC) and molding business of DIC Kako (Chiba Prefecture, Japan). The two companies signed the contract on August 3, 2020. The combined company name is JC Kako and will start operations on December 1, 2020.
Strengthen SMC business to meet automotive demand
SMC is a composite material containing unsaturated polyester resin, which is mixed with fillers and glass fibers before being pressed into tablets. It has a certain strength, and at the same time has cold and heat resistance, so it has a wide range of uses. SMC materials can be used in automotive parts such as bumpers, instrument panels, hard-shell car roofs, floors, and sound insulation panels. In the automotive field, the development of new energy vehicles and the demand for weight reduction are driving the improvement of automotive materials. SMC's excellent heat resistance, strength and dimensional stability can meet production needs.
SMC production capacity increased by 70%
The merger will establish a dual plant, which will increase Japan Composite's SMC production capacity by 70% to 33,000 tons, which can provide a stable supply relationship.
Global expansion with fiber reinforced composites
Japan Composite will use the group's resources such as various materials, technologies, molds and prototypes to enhance the global expansion of SMC fiber-reinforced composite materials in various fields.
Japan Composite is held by Mitsui Chemicals with 65% of the shares, and Japan Chamber of Commerce holds 35% of the shares. Mitsui Chemicals is mainly engaged in basic petrochemical raw materials, synthetic fiber raw materials, basic chemicals, synthetic resins and other businesses. The Japan Chamber of Commerce Corporation is a chemical company, mainly engaged in catalyst business, such as ethylene oxide, acrylic acid, automotive catalysts, process catalysts, etc.
DIC Kako is a subsidiary of DIC Co., Ltd. It is mainly engaged in the production and sales of FRC molding business and SMC materials.