Core Viewpoint - Three companies, Mitsui Chemicals, Idemitsu Kosan, and Sumitomo Chemical, have reached a basic agreement to integrate their general resin businesses in Japan, aiming to enhance production and logistics efficiency amid a challenging market environment influenced by excess capacity in China [2][4]. Group 1: Integration Details - The integration will involve Mitsui Chemicals holding a 65% stake and Idemitsu holding a 35% stake in the joint venture, Prime Polymer, which produces polyolefins, along with Sumitomo Chemical's polyolefin business [4]. - The integration is scheduled to be completed by April 2026, with combined sales revenue projected to reach 387.3 billion yen in the fiscal year 2024 [4]. - Post-integration, the ownership structure will be Mitsui Chemicals at 52%, Idemitsu at 28%, and Sumitomo at 20%, with discussions ongoing regarding the incorporation of Sumitomo's polyolefin business into Prime Polymer [4]. Group 2: Industry Context - The Japanese petrochemical industry has previously seen state-led consolidation efforts, but large-scale restructuring has not progressed significantly [5]. - The current market conditions, characterized by excess capacity in China and declining domestic demand in Japan, have made industry rationalization restructuring unavoidable [5].

Core Viewpoint - The South Korean government is shifting its approach to the petrochemical industry from "self-regulation" to "strong guidance," indicating a need for structural adjustments and business reorganizations within the sector [1] Group 1: Government Initiatives - President Lee Jae-myung has called for domestic petrochemical companies to pursue "business restructuring" and "equipment adjustments," signaling a proactive stance on industry restructuring [1] - The government plans to introduce additional measures by the end of August to facilitate this transition, moving away from previous policies that focused primarily on minimizing negative impacts on employment and local economies [1] Group 2: Industry Response - The Minister of Trade, Industry and Energy, Lee Chang-won, has suggested that the petrochemical industry may face intense structural adjustments and has urged companies to engage in voluntary restructuring [1] - The government has warned that it will take decisive action against companies that attempt to "free ride" or do not cooperate with the restructuring efforts [1]