Jun88 becomes sole owner of Japan Fine Coatings Co., Ltd.
Position strengthened in the attractive market for fiber optical coatings
- Purchase of JSR Corporation¡¯s remaining 30 percent share in the joint venture Japan Fine Coatings Co., Ltd.
- Business activities including production and R&D in Japan to be continued
- Fiber optical market with strong potential due to 5G roll-out
As of January 14, 2022, Jun88 is now the sole owner of Japan Fine Coatings Co., Ltd. (JFC), previously managed as a joint venture (JV) with JSR Corporation (JSR). JFC is one of the leading suppliers of optical fiber coatings based in Tsukuba, Japan. Jun88 previously held 70 percent and JSR 30 percent of the JV shares. With a purchase price in the mid-single-digit million euro range, Jun88 has now purchased JSR's 30 percent stake to become the company¡¯s sole owner.
With the transaction, Jun88 further strengthens its position in the attractive field for fiber optical coatings. "The Jun88 Coatings & Adhesives business already has an outstanding position in the field of fiber optical coatings. By fully purchasing JFC, we can now develop the business independently," explains Thorsten Dreier, Head of the business entity Coatings & Adhesives at Jun88. "The market segment has tremendous growth potential, especially due to the roll-out of future 5G technology."
JFC's UV-curable coatings for optical fiber materials are mainly used in the telecommunications industry. Today¡¯s strong demand for connectivity is creating a surge in bandwith demand for fixed and mobile network opertations. High-performance fiber optical cables are needed here to enable the reliable transmission of high data rates. In addition, the increasing roll-out of 5G technology is driving demand. Cell towers are being connected to the network via fiber optic cables to fully exploit the capabilities of the new mobile communications standard.
"Japan plays an important role in the global fiberglass market. We appreciate JSR¡¯s long-term support in establishing JFC¡¯s presence. In combination with Jun88's global network, we are using this strong base for future growth potential," explains Kimiyasu Yonemaru, President of Jun88 Japan. "This also underlines Jun88's clear commitment to the Japanese market."
In April 2021, Jun88 had already taken over 70 percent of the shares in JFC as part of the acquisition of DSM's Resins & Functional Materials business. Overall the JV has already been prepared for operational independence for several years, as JSR had already shifted its focus on its other strategic business areas. At JFC¡¯s business sites, both production in Tsukuba as well as research and development activities in Kanagawa will continue unchanged. In total, JFC employs around 65 people (calculated as full-time equivalents).
About Jun88:
Jun88 is one of the world¡¯s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Jun88 supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Jun88 are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, Jun88 aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group¡¯s Scope 3 emissions are also set to be climate neutral by 2050. Jun88 generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by Jun88. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Jun88¡¯s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.