JSR Corporation announced the successful completion of the divestiture of its emulsions business, previously held under its wholly-owned subsidiary Emulsion Technology, Co., Ltd. (ETEC), to NIPPON SHOKUBAI CO, LTD. The transfer of all shares of ETEC’s emulsions business division to NIPPON SHOKUBAI was finalized in first week of April as initially announced on November 12, 2024.

This strategic move sees ETEC, with its expertise in resins for adhesives and coatings, as well as polymers for waterproofing and construction, becoming a member of the Nippon Shokubai Group. Both companies anticipate that this integration will significantly contribute to the further enhancement of corporate value for the Nippon Shokubai Group, particularly within its Industrial & Household business segment. ETEC’s established strengths in the construction chemicals field, leveraging its core emulsion polymerization and compounding technologies using synthetic rubber latex and acrylic emulsions, are expected to complement and strengthen Nippon Shokubai’s existing portfolio.

Simultaneously, JSR Corporation has successfully spun off the fine chemicals business division of ETEC into a new wholly-owned subsidiary named “JSR Fine Technology Co., Ltd.” This strategic separation allows JSR to sharpen its focus on the Digital Solution business, where it aims to achieve sustainable growth by strengthening the production capabilities of raw material polymers for electronic materials and display materials at JSR Fine Technology Co., Ltd.

ETEC was originally established in 1963 as a subsidiary of JSR and has since operated with two distinct business divisions: Emulsions and Fine Chemicals. The Emulsions business has been a key player in manufacturing and selling a range of products essential for the construction, civil engineering, and various industrial sectors, including waterproofing materials, adhesives, and tackifiers. The Fine Chemicals business specializes in the production of crucial raw material polymers for the advanced electronic and display material industries.

JSR Corporation believes that the transfer of ETEC’s emulsions business to the Nippon Shokubai Group is a mutually beneficial transaction. Nippon Shokubai will gain a well-established business with significant expertise in the construction chemicals sector, while JSR will be able to concentrate its resources and investments on its rapidly evolving Digital Solution business. The spin-off of the fine chemicals division into JSR Fine Technology Co., Ltd. underscores JSR’s commitment to bolstering its capabilities in this high-growth area.

The completion of this divestiture marks a significant step in JSR Corporation’s strategic realignment, allowing both the emulsions business under the umbrella of Nippon Shokubai and the newly formed JSR Fine Technology Co., Ltd. to pursue focused growth strategies within their respective domains.