Resonac to spin off petrochemical arm

Resonac Holdings, formerly known as Showa Denko, plans to spin off its petrochemical business. The unit has annual sales of about $2.1 billion and operates a complex in Oita, Japan, where it makes olefins, vinyl acetate, and other chemicals. The company says it is necessary to retain stable and sustainable operations of the business because it is part of “Japan’s social infrastructure.” Resonac plans to keep a stake of up to 20% in the new company, which will trade on the Tokyo Stock Exchange. Japan’s petrochemical industry has been struggling in recent years, and firms are looking to consolidate. Mitsubishi Chemical Group recently backed out of plans to spin off its petrochemical business, opting instead to reorganize it internally.