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| September 10, 2007 |
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Dissolution of Joint Venture for Acrylic Acid and Acrylates Business
with Sasol in the Republic of South Africa |
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| Mitsubishi Chemical Corporation |
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Mitsubishi Chemical Corporation (Head office: Minato-ku, Tokyo; President: Yoshimitsu Kobayashi, hereinafter referred to as MCC) and Sasol Chemical Industries Limited (Head office: Johannesburg, the Republic of South Africa, hereinafter referred to as Sasol) have agreed to dissolve the joint venture for acrylic acid and acrylates business in the Republic of South Africa.
MCC and Sasol established two joint ventures in acrylic acid and acrylates business in the Republic of South Africa on September 30, 2003. One is Sasol Dia Acrylates (Pty) Limited (hereinafter referred to as SDA) which markets the products and conducts investment activity in the global market, and the other is Sasol Dia Acrylates (South Africa) (Pty) Limited which manufactures the products. The commercial production at the plant started in March 2004.
After due discussion between MCC and Sasol on the future direction of the joint ventures in the changing business environment, the companies reached the conclusion that it would be of mutual advantage to dissolve SDA in an amicable manner and to develop the relevant business on their own.
After signing the various agreements on dissolution, MCC will transfer all the 50% shares in SDA to Sasol and both joint ventures will become wholly owned subsidiaries of Sasol. The transaction is subject to the approvals from the South African Competition Authorities, German Competition Authorities, and the South African Reserve Bank.
MCC will continue to expand its business in the global market as well as Japanese market, off-taking some products from Sasol for a period after the dissolution and also having the right to off-take product from Shenyang Paraffin-Wax Chemical Co., Ltd. in China, a subsidiary of China National Bluestar (Group) Corporation, to whom MCC has licensed its acrylic acid and acrylates production technology, on top of the products available from the existing plants of acrylic acid and acrylates at the Yokkaichi Plant in Japan.
The MCC Group will continuously pursue the development of its “total acrylic chain” from upstream products such as acrylic acid and acrylates to downstream products such as superabsorbent polymers and emulsions.
The dissolution will have little impact on the consolidated financial results of the current fiscal year for Mitsubishi Chemical Holdings Corporation, the parent company of MCC.
| For further information, please contact |
Public Relations and Investor Relations Department
Mitsubishi Chemical Corporation |
| Tel: +81-3-6414-3730 |
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Corporate profile
Sasol Dia Acrylates (Pty) Limited
| 1. Establishment |
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September 30, 2003 |
| 2. Head office |
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The Republic of South Africa |
| 3. President |
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Takeshi Kimura (dispatched from MCC) |
| 4. Shareholders |
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MCC (50%)
Sasol (50%) |
| 5. Line of business |
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Business management, marketing, and investment for acrylic acid and acrylates |
Sasol Dia Acrylates (South Africa) (Pty) Limited
| 1. Establishment |
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September 30, 2003 |
| 2. Head office |
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The Republic of South Africa |
| 3. President |
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Stephan Schoeman |
| 4. Shareholders |
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Sasol Dia Acrylates (Pty) Limited (50%)
Sasol (50%) |
| 5. Line of business |
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Production of acrylic acid and acrylates |
| 6. Production capacity |
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Acrylic acid: 80,000 tons per annum
Butyl acrylates: 80,000 tons per annum
Ethyl acrylates: 35,000 tons per annum
Glacial acrylic acid: 10,000 tons per annum |
| 7. Location |
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In the Sasolburg Plant of Sasol |
| 8. Start of commercial operation |
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March 2004 |
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