MOSCOW (MRC) -- Showa Denko (SDK) will terminate the production of Bionolle biodegradable polyester resin by the end of December 2016 and will discontinue sale of the product by the end of December 2017, as per Apic-online.
SDK noted that it is "difficult for the company to continue production and sale of biodegradable plastic, since there has been no sign of improvement in the harsh market environment for biodegradable plastics business because of the delay in permeation of environmental regulations on plastic shopping bags and a fall in market prices of biodegradable plastics."
The company, as part of its medium-term business plan, will continue to focus on accelerating the expansion of its functional chemicals business.
As MRC reported previously, in August 2016, Showa Denko K.K., JX Nippon Oil & Energy Corp. (JX), and LyondellBasell Group reached final agreement concerning the sale and purchase of LyondellBasell’s shares in SunAllomer Ltd. (SunAllomer), a joint venture (JV) company among the three parties for the development, production and sale of polypropylene (PP) and PP-based advanced material.
Showa Denko K.K. is mainly engaged in the petrochemical business. The Petrochemical segment manufactures and sells olefin, organic chemicals and others. The Chemical Product segment supplies chemicals, industrial gases, special gas and functional drug for semiconductors, functional high molecular materials, among others.
MRC