Covestro Becomes Sole Owner of Japan Fine Coatings

As of January 14, 2022, Covestro is now the sole owner of Japan Fine Coatings Co., Ltd. (JFC). The company was previously a joint venture with JSR Corporation (JSR). JFC is one of the leading optical fiber coating suppliers based in Tsukuba, Japan. Covestro previously held a 70% stake in the joint venture, with JSR holding a 30% stake. Covestro acquired a 30% stake in JSR for a mid-single-digit million euro purchase price, becoming the sole owner of the company.

With this transaction, Covestro further strengthens its position in the attractive optical fiber coating segment. "Covestro's Covestro Coatings & Adhesives business already has an excellent position in optical fiber coatings. With the complete acquisition of JFC, we can now develop this business independently," explains Thorsten Dreier, Head of Covestro's Covestro Coatings & Adhesives business entity, " This segment has huge growth potential, especially due to the future rollout of 5G technology."

JFC's UV-curable coatings for optical fiber materials are mainly used in the telecommunications industry. Today, the strong need for connectivity is driving surging bandwidth demands for fixed and mobile network operations. Here high-performance fiber optic cables are required for reliable transmission of high data rates. In addition, the continuous rollout of 5G technology is also driving demand. Cell towers are connecting to networks via fiber optic cables to take advantage of the capabilities of new mobile communication standards.

"Japan plays an important role in the global fiberglass market. We thank JSR for its long-term support in establishing JFC. Combined with Covestro's global network, we are leveraging this strong foundation for future growth potential." Covestro "It also underlines Covestro's clear commitment to the Japanese market," explained Kimiyasu Yonemaru, president of the Japanese company.

In April 2021, Covestro has taken over a 70% stake in JFC as part of the acquisition of DSM's resins and functional materials business. Overall, the joint venture has been preparing for operational independence for several years as JSR has shifted its focus to other strategic business areas. Production in Tsukuba, Japan, and research and development activities in Kanagawa will continue to be maintained at JFC's business locations. In total, JFC employs about 65 people.