Notice on Establishment of New Company for Styrene-related Business and Demerger through Company Split (Simple Absorption-type Company Split)

Overview of the Spin-off

Denka Company Limited has announced plans to spin off its styrene-related business into a newly established subsidiary, Node Chemical Co., Ltd. In the first phase, sales operations will be delegated to the new company and business is scheduled to commence around April 2027. In the second phase, manufacturing and sales divisions will be transferred to the company via an absorption-type split around April 2028. The new company will be a 100% subsidiary of Denka Company Limited, and the spin-off procedures for the functional resin business in Singapore are also progressing.

Business Strategy and Future Outlook

This spin-off aims to promote swift, agile decision-making and autonomous management to enhance business competitiveness and corporate value. It secures options for growth strategies such as capital partnerships, joint ventures, alliances, and IPOs, targeting improved capital efficiency and sustainable growth. The new company will strengthen the business foundation centered on styrenic materials in line with the Denka consolidated group's strategy.