This was made possible by Yokkaichi's excellent geographical location and by the integration of research and development into plant operations. Our restructuring effort will make the best use of these strong points, shifting the focus from predominantly petrochemical plant toward "highly-profitable and technical-development oriented plant", with an emphasis on high value-added functional products.

While the production of ethylene and certain derivative-products at this Plant will be shut down in January 2001, the additional PTMG (Polytetramethylene-etherglycol) production facility has already gone online, and the pilot facility for the manufacture of the POGE (polyglycerine fatty acid ester) food emulsifier is currently under construction. These examples illustrate the ways in which we intend to implement our plan to continue to expand into the field of functional products.

MCC Group companies in Yokkaichi are also demonstrating solid progress in the implementation of business plans in downstream areas. Such plans include the construction of compounding facilities for engineering plastic resins and recycling business for office equipment.

We are now in the first fiscal year of the Mid-term Plan, through which we hope to expand the business at the Yokkaichi Plant, during the period of the Plan and into the 21st century. We intend to accomplish this expansion by wholeheartedly moving forward with new business strategies in the field of functional products.