January 18, 2025 – Mitsui Chemicals Expands POE Material Horizons Amidst China Market Challenges
Mitsui Chemicals is actively seeking new end-use and regional markets for its Polyolefin Elastomer (POE) materials, particularly its “tafmer” brand, to counter the decline in sales in the Chinese market. The demand for “tafmer” POE, primarily used as a solar cell encapsulant material, has been affected by rising polymer prices and competition from mature Ethylene Vinyl Acetate (EVA) materials.
In a recent presentation event, Osamu Hashimotoo, President and CEO of Mitsui Chemicals, acknowledged the prominent role of Chinese companies in solar panel production. However, due to stagnant demand in the Chinese market and cost considerations, some solar cell encapsulant materials have reverted to using EVA. This has resulted in slower-than-expected sales growth for “tafmer” polyolefin elastomers. Hashimotoo emphasized, nevertheless, that polyolefin elastomers offer superior performance compared to EVA.
To mitigate the impact of the downturn in the Chinese market, Mitsui Chemicals is expanding into growth-oriented regions and diversifying its applications. Currently, sales of polyolefin elastomers are gradually increasing in regions outside of China, and they are also showing promising growth momentum in other application areas such as additive manufacturing, automotive materials, and high-performance packaging. In automotive materials, Mitsui Chemicals anticipates that “tafmer” polyolefin elastomers will play a crucial role in enhancing driving range and modifying recycled materials. In the packaging sector, with the growing demand for single-material solutions, polyolefin elastomer sales are expected to further increase in the European market.
Hashimotoo concluded, “We anticipate that these market expansion and application diversification efforts will bear greater fruit in the second half of fiscal year 2025, paving the way for us to enter the next phase of growth.”