On April 2, 2025, Japan-based UBE Corporation announced the completion of its acquisition of Lanxess's polyurethane systems business. Initially announced in October 2024, the deal sees UBE taking over Lanxess's global polyurethane operations, including five production facilities, multiple application laboratories, and approximately 400 employees.

Transaction Background and Details
Lanxess's polyurethane systems business, with over 70 years of history, specializes in the development and production of high-performance polyurethane resins, serving high-end applications such as the semiconductor industry. The acquisition covers 11 Lanxess subsidiaries worldwide, including facilities in Shanghai and Jiangsu, China.

UBE Corporation's Strategic Vision
UBE Corporation views this acquisition as a key step in its strategic investment in specialty chemicals. By integrating Lanxess's technical expertise, global talent pool, and manufacturing capabilities, UBE aims to expand its poly carbonate diol (PCD) and polyurethane dispersion (PUD) businesses and strengthen its position in the high-performance polyurethane resins market.

Lanxess's Business Restructuring
In recent years, Lanxess has been streamlining its operations. The sale of its polyurethane systems business is part of its strategy to optimize its asset structure and focus on core segments. Lanxess expects to generate approximately €500 million from the transaction, which will be used to reduce net debt and improve its balance sheet.

UBE Corporation's M&A Initiatives
UBE Corporation announced on April 1, 2025, the establishment of a new M&A Promotion Office, dedicated to acquiring unique technologies and resources to drive growth in environmental, health, and high-value markets.

This transaction marks a significant expansion for UBE in the specialty chemicals sector and provides a new opportunity for Lanxess's business transformation.

Source: UBE Corporation