February 11, 2025 – Sumitomo Chemical Expands Market Footprint with Acquisition of Syensqo’s LCP Resin Business
Sumitomo Chemical has made a strong move to expand its market presence by acquiring the liquid crystal polymer (LCP) resin business of Belgian company Syensqo SA/NV (hereinafter referred to as “Syensqo”). The acquisition aims to integrate Syensqo’s products and technologies, strengthening Sumitomo Chemical’s ability to respond to new market demands and further expanding its LCP business, particularly in the fields of information and communication technology (ICT) and mobile applications.
With the proliferation of AI technology and increasing power demand, LCP has seen a sustained rise in market demand as a key material for electric vehicle power devices, next-generation high-speed communication millimeter-wave radars, and high-speed, high-capacity connectors for data centers. Syensqo’s LCP is renowned for its high heat resistance, and through this acquisition, Sumitomo Chemical will be able to more comprehensively meet the diverse needs of customers, further enhancing its market competitiveness in the LCP sector.
AsiaMB understands that Sumitomo Chemical boasts strong capabilities in polymer material and application technology research and development. The acquisition of Syensqo’s LCP business will enable it to fully leverage Syensqo’s existing LCP development projects and production technologies, not only consolidating its position in the ICT and mobile application fields but also expanding its product lineup in a wider range of industrial fields and achieving diversified business development.
It is worth mentioning that Syensqo SA/NV, which was spun off from Solvay Group in December 2023, is a company specializing in specialty materials and chemicals. This acquisition by Sumitomo Chemical will undoubtedly bring new development opportunities for Syensqo.
Furthermore, Sumitomo Chemical plans to continuously expand its LCP business as one of its core businesses and, through collaborations with other companies, aims to double the sales revenue of its LCP business by the early 2030s. At the same time, Sumitomo Chemical is continuously optimizing its business structure and has previously announced the sale of multiple businesses in China, including LCD polarizer business and polypropylene (PP) composite materials and thermoplastic elastomer (TPE) business, to concentrate resources on the development of its core businesses.
As a high-performance specialty engineering plastic, LCP resin has numerous excellent properties and is widely used in electronic and electrical appliances, industrials, consumer electronics, automobiles, and biomedical fields. Sumitomo Chemical’s acquisition of Syensqo’s LCP business will undoubtedly inject new vitality into its development in these fields.