Showa Denko K.K. (SDK) recently announced its integration with Showa Denko Materials (SDMC) effective on January 1, 2023 to establish ‘Resonac’, following approval at extraordinary general meetings of shareholders.

SDK will become a holding company ‘Resonac Holdings Corporation,’ and SDMC will change into an operating company ‘Resonac Corporation.’

SDK has businesses that produce stable earnings, such as petrochemicals, graphite electrodes, and functional materials. Meanwhile, SDMC is strong in businesses with growth potential, such as semiconductor materials and mobility.

Through the integration, the group will aim at further growth by investing earnings from stable businesses into growth businesses. And the Resonac will aim at becoming a world-leading chemical company by maintaining the scale of net sales at a level exceeding 1 trillion yen while ensuring margin of more than 20%.