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| January 24, 2001 |
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| Alliance and Capital
Participation in House Equipment-related Business |
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Chofu Seisakusho Co., Ltd.
Emoto Industry Co., Ltd.
Mitsubishi Chemical Corporation |
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As of January 24, 2001, Chofu Seisakusho Co., Ltd. (Head
office: Shimonoseki, Yamaguchi-ken; President: Yasuo Kawakami), Emoto
Industry Co., Ltd. (Head office: Sapporo, Hokkaido; President: Hideo Tanaka)
and Mitsubishi Chemical Corporation (Head office: Chiyoda-ku,
Tokyo; President: Kanji Shono) reached an agreement, in which it was made clear
that Chofu Seisakusho and Emoto Industry will have a strategic business alliance
mainly in the area of house equipment-related business, with the object of mutual
growth. It is also agreed that Mitsubishi Chemical Corporation will transfer it's
share of Emoto Industry, which is equal to 10% (1.4 million shares) of the outstanding
stock, to Chofu Seisakusho.
Based on the background that the number of new house construction (especially
one's own house construction) has been decreasing, competition has been quite
intense between companies in the house equipment-related business. In addition
to that, enforcement of the law to secure qualities of houses and indication of
performance and qualities of houses were put into practice, which demands stronger
business foundation, including better qualities of the products, reinforcement
of the sales force, improvement of cost competitiveness, and so on. Both Chofu
Seisakusho, whose main product is "hot water supply equipment" for housing, and
Emoto Industry, who is strong in "system bath" for single-family dwelling, will
cooperate in wide areas such as sales of mutual products, purchase of raw materials,
joint development of new products, and interchange of personnel. Various synergy
effects are expected as follows:
| 1. |
Mutual "OEM" supply of the main products of each other will
bring more varieties, better functions and specifications for "system bath" of
both companies. More competitive product line-up is expected to increase sales.
"Hot water supply equipment", which must be attached to bath facilities, is expected
to increase in sales to be sold as "one set" with the "system bath" on the sales
route of Emoto Industry. This effect is expected especially for "hot water supply
equipment fueled by oil", as Chofu Seisakusho, the leader of the industry, will
provide Emoto Industry with the system through "OEM." |
| 2. |
As for air conditioner, heater, solar equipment and other house
equipment, mutual products will be put on the sales route of each other. The number
of the products dealt in one company will increase to respond to the various needs
of customers. Efficiency in production and sales of both companies will improve. |
| 3. |
Joint development and purchase of raw materials for "system
bath" and bath-related equipment will enhance better development skills and more
reduction in costs. |
| 4. |
Sales affiliation will enhance improvement in customer service
and efficient sales. |
| 5. |
Tie-up in production will improve technology in manufacturing
and efficient production system. |
| For further information, please contact |
| General Affairs Division., |
| Chofu Seisakusho Co., Ltd. |
| Tel: [+81] 832-48-2777 |
| General Affairs Department., |
| Emoto Industry Co., Ltd. |
| Tel: [+81] 11-863-7530 |
| Public Relations Dept., |
| Mitsubishi Chemical Corporation |
| Tel: [+81] 3-3283-6274 |
<For your reference: Company Overview>
1. Chofu Seisakusho Co., Ltd.
| (1) |
Head office: 2-1, Chofu Ogicho, Shimonoseki-shi, Yamaguchi-ken |
| (2) |
President: Yasuo Kawakami |
| (3) |
Established: July 1, 1954 |
| (4) |
Paid-in capital: 7 billion yen |
| (5) |
Number of employees: 1,285 |
2. Emoto Industry Co., Ltd.
| (1) |
Head office: North 1-26, Hondori 14-chome, Shiroishi-ku, Sapporo,
Hokkaido |
| (2) |
President: Hideo Tanaka |
| (3) |
Established: July 19, 1967 |
| (4) |
Paid-in capital: 1.9 billion yen |
| (5) |
Number of employees: 537(consolidated) |
3. Mitsubishi Chemical Corporation
| (1) |
Head office: 5-2, Marunouchi 2-chome, Chiyoda-ku, Tokyo |
| (2) |
President: Kanji Shono |
| (3) |
Established: June 1, 1950 |
| (4) |
Paid-in capital: 145 billion yen |
| (5) |
Number of employees: 33,465(consolidated) |
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