Sir Adrian Swire is to step down from the helm of London-based John Swire & Sons at the end of this year, a company spokesman confirmed.
He will be replaced by fellow long-time Swire employee Edward Scott, now head of the group's Australian operations.
A Swire spokesman said Sir Adrian, now 65, had decided that it was in the best interests of all concerned that he make way for a younger successor.
He plans to remain an executive director of the company and will continue to spend a significant amount of time in the group's London head office.
The change in leadership had been widely mooted in the market last week, leading to speculation that a new chairman at John Swire might orchestrate closer co-operation between the group's Hong Kong arm, Swire Pacific, and mainland entity Citic Pacific.
The Swire spokesman, who confirmed the change would take place on January 1, said the succession had been planned for some time and should make virtually no difference to group strategy.