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| April 28, 1998 |
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| Establishment of Joint Venture for Polystyrene
Operations |
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Asahi Chemical Industry Co., Ltd.
Mitsubishi Chemical Corporation |
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Asahi Chemical and Mitsubishi Chemical have reached basic agreement on the establishment
of a new joint venture company for the restructuring, consolidation, and merger
of their polystyrene operations.
Asahi Chemical and Mitsubishi Chemical will proceed with planning and implementation
which is expected to lead to the initiation of operations by the new joint venture
in October of this year, so long as no questions arise in the course of deliberations
by the Japan Fair trade Commission concerning anti-trust law and related matters.
In concert with their agreement and progress in relation to polystyrene, Asahi
Chemical and Mitsubishi Chemical will also proceed with mutual study and discussion
of a similar restructuring, consolidation, and merger of their styrene monomer
operations.
The business environment for polystyrene in recent years has been one of constantly
increasing severity, with long-term stagnation in domestic demand, transfer by
user industries to overseas manufacturing sites, and intensifying competition
from foreign polystyrene manufacturers. The agreement by Asahi Chemical and Mitsubishi
Chemical is based on a shared perception of the essential need to build a stronger
operating base and increased international competitive strength, in order to permit
the maintenance, continuing development, and future growth of the polystyrene
business, through intensive integration and consolidation of their polystyrene
operations.
In brief corporate profile, the joint venture is scheduled to take the following
configuration.
Corporate Profile of New Joint Venture
1. Scope of business:Production and sale of polystyrene,
and related R&D.
As currently planned, operation will begin with domestic marketing and sale of
polystyrene, to be expanded within approximately one year to fully integrated
polystyrene operations by the transfer and initiation of related polystyrene production
and R&D capabilities from the parent companies. |
| 2. Expected establishment: |
October 1998 |
| 3. Expected operational start-up: |
October 1998 |
| 4. Estimated sales: |
Approx. 10,000 million/year |
| 5. President: |
To be assigned from Asahi Chemical |
| 6. Employees: |
To be assigned from both parent companies; number as yet undetermined |
| 7. Shareholders: |
50%, Asahi Chemical
50%, Mitsubishi Chemical |
The name, head office location, and capitalization of the new joint venture have
not yet been determined. The production capacity is scheduled to be 543,000 tons/year
of polystyrene, as the combined total production capacity of the parent companies
as of December 1997.
| For further information, please contact |
| Asahi Chemical Industry Co., Ltd |
| Public Relations Office |
| Tel: +81-3-3507-2060 |
| Mitsubishi Chemical Corporation |
| Public Relations and Surveying Dept. |
| Tel:+81-3-3283-6274 |
Corporate Profiles of Asahi Chemical and Mitsubishi Chemical
Asahi Chemical Industry Co., Ltd.
| 1. Head Office: |
Hibiya-Mitsui Building
1-2 Yurakucho 1-chome, Chiyoda-ku, Tokyo 100-8440 |
| 2. President: |
Kazumoto Yamamoto |
| 3. Paid-in capital: |
103,300 million (as of March 31, 1998) |
| 4. Sales: |
1,100,200 million (year ended March 31, 1997) |
Mitsubishi Chemical Corporation
| 1. Head Office: |
5-2, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-0005 |
| 2. President: |
Akira Miura |
| 3. Paid-in capital: |
140,700 million (as of March 31, 1998) |
| 4. Sales: |
1,080,700 million (year ended March 31, 1997) |
Polystyrene Production Capacity
| Tons/year |
| Plant |
Asahi Chemical |
Mitsubishi Chemical |
| Mizushima |
163,000 |
- - |
| Chiba |
180,000 |
- - |
| Yokkaichi |
- - |
200,000 |
| Total |
343,000 |
200,000 |
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| Total combined capacity: 543,000 tons/year |
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