UBE Corporation Europe will continue to operate as a wholly-owned subsidiary of UBE Industries, Ltd., by absorbing its subsidiaries in Spain: UBE Chemical Europe and UBE Engineering Plastics.
UBE Corporation Europe is a holding company for the UBE Group in Europe that mainly oversees administrative operations for its two subsidiaries. UBE Chemical Europe manufactures and markets caprolactam, ammonium sulfate, and fine chemicals, and UBE Engineering Plastics manufactures and markets nylons.
In April 2015, UBE Industries launched a new Chemicals Company as part of an internal reorganization, by integrating the existing Chemicals & Plastics Company and Specialty Chemicals & Products Company. The reorganization of chemical units is aimed at rapidly restoring earnings from the chemicals segment, by accelerating the selective concentration of businesses in the chemicals segment and achieving the optimal allocation of business resources.
The UBE Group is also pursuing strategies for global expansion of the nylon business. In February 2015, UBE Engineering Plastics expanded its production capacity by 10,000 tons, bringing its current total capacity to 30,000 tons annually, with additional expansion plans under consideration. For caprolactam, which is used as a raw material to make nylon, the UBE Group is pursuing initiatives to enhance cost competitiveness.
The merger of the three Spanish subsidiaries will enhance the operational framework and achieve business efficiencies in Spain, as the UBE Group moves to further strengthen its business platform and secure growth.