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| April 1, 2002 |
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| Stop of Ammonia Production at Kurosaki Plant |
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| Mitsubishi Chemical Corporation |
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Mitsubishi Chemical Corporation (Head Office: Chiyoda-ku, Tokyo; President: Kanji Shono) has decided to stop production of ammonia (annual production capacity: 272,000 tons) at Kurosaki Plant (Yahatanishi-ku, Kitakyushu City) aiming at around mid-October of this year.
While ammonia is used as raw material for various chemical products and industrial drugs such as nitric acid, fertilizers, and caprolactam, the plant also supplies oxygen and carbon dioxide which are also produced in ammonia production to other manufacturing facilities in the plant.
Mitsubishi Chemical started to produce ammonia at Kurosaki Plant in 1937, started operation of the current plant using naphtha as raw material in 1970, and has endeavored to strengthen its competitiveness through diversification of raw materials, conversion of fuels, rationalization of operation, and promotion of automation. However, the competition against imported products with cost competitiveness backed up by inexpensive raw materials and low fixed cost has been fierce. For the past several years, in particular, the situation has become very serious as the costs of raw materials and fuels have risen. Accordingly, the company has decided to stop the production of ammonia and outsource it to maintain the competitiveness of the related plants that receive ammonia supply.
As to the carbon dioxide or the raw material of dry ice and liquefied carbonic acid, it will continue to be produced by rebuilding the ammonia plant.
| For further information, please contact |
| Public Relations and Investor Relations Dept., |
| Mitsubishi Chemical Corporation |
| Tel: [+81]-(0)3-3283-6274 |
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