As a global wave of consolidation sweeps through the chemicals industry, Sumitomo Chemical Co., Japan's second-largest chemicals maker, is trying to get a jump on its domestic rivals by merging with industry No. 3 Mitsui Chemicals Inc.

"The merger with Mitsui is the only way for us to accelerate the build-up of our presence in the global market . . . in the face of increasing megacompetition," Sumitomo Chemical President Hiromasa Yonekura said in a recent interview with The Japan Times.

The Sumitomo-Mitsui merger, announced in November 2000, is expected to create the largest chemicals maker in Japan and become one of top 10 chemical companies in the world. The current leader in Japan is Mitsubishi Chemical Corp.