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| April 8, 2008 |
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Plan to Establish a Joint Venture Company
for the Manufacture and Sale of BPA and PC Resins in China |
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| Mitsubishi Chemical Corporation |
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Mitsubishi Chemical Corporation ("MCC"; Head office: Minato-ku, Tokyo; President: Yoshimitsu Kobayashi) announced that a joint feasibility study on establishing a joint venture company for manufacturing and selling bisphenol-A ("BPA") and polycarbonate ("PC") resins with China Petroleum and Chemical Corporation ("Sinopec"; Head office: Beijing, China; Chairman: Su Shulin; President: Wang Tianpu) and Mitsubishi Engineering-Plastics Corporation ("MEP"; Head office: Chuo-ku, Tokyo; President: Yuichi Nakamura) has been completed, and the three companies have submitted a project application to China's National Development and Reform Commission on April 8, 2008. After the approval, the parties will immediately file an application to establish a joint venture with a view to completing construction of a production facility by the spring of 2010.
PC resins are plastic materials with high degrees of transparency, impact resistance and dimensional stability and are widely used for optical discs, automotive parts, electric and electronic components, construction materials and everyday consumer items. Demand for PC resins is projected to increase rapidly - at 7% per annum worldwide and at 9% to 10% in Asia. The annual demand growth in China, in particular, is expected to exceed the 10% mark. BPA is utilized as a main raw material of PC resins and epoxy resins. As with PC resins, demand is expected to increase rapidly. To meet this growing demand, MCC has decided to set up a facility for manufacturing BPA and PC resins in China.
The joint venture will have its production facility of BPA and PC resins on the premises of Sinopec Beijing Yanshan Company in Beijing. For production, Sinopec will supply raw materials for BPA, such as phenol and acetone, and utilities for the production facilities, while MCC will provide a license for BPA and PC resin manufacturing technologies and diphenyl carbonate (DPC), the main raw material of PC resins. The current demand-supply balance for BPA and PC resins in China depends greatly on imports. This project aims to ensure consistent supply and the timely delivery to customers in China.
The joint venture will be half funded by PCR Investments Japan Corporation (PCRJ), a Japan-based investment company jointly founded by MCC and MEP in February 2008, and the other half will be funded by Sinopec.
MCC regards the integrated phenol - BPA - PC product chain as a strategic core business and will be actively working to develop this operation into a business chain with a world-leading competitive edge based on its technology superiority.
| For further information, please contact |
Public Relations and Investor Relations Department
Mitsubishi Chemical Corporation |
| Tel: +81-(0)3-6414-3730 |
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Profile of joint venture
| 1. Company name: |
TBD |
| 2. Location: |
On the premises of Sinopec Beijing Yanshan Company in Beijing |
| 3. Production capacity: |
PC: 60,000 tons/year; BPA: 150,000 tons/year |
| 4. Production process: |
MCC proprietary technology |
| 5. Scheduled construction: |
End of 2008 |
| 6. Scheduled completion: |
Spring 2010 |
| 7. Total investment amount: |
0.3 billion US dollars |
| 8. Equity participation: |
PCRIJ: 50%; SINOPEC: 50% |
Profile of investment company
| 1. Company name: |
PCR Investments Japan Corporation |
| 2. Head office: |
Minato-ku, Tokyo |
| 3. Representative: |
Hiroaki Ishizuka
(Chief Operation Officer, Polymer Division, MCC) |
| 4. Establishment: |
February 2008 |
| 5. Capital: |
About 6 billion yen |
| 6. Equity participation: |
MCC: 80%; MEP: 20% |
Profile of MEP:
| 1. Company name: |
Mitsubishi Engineering-Plastics Corporation |
| 2. Head office: |
Chuo-ku, Tokyo |
| 3. Products: |
PC, Nylon-6, Polybutylene terephthalete, Polyacetal, Modified polyphenylene
ether, Glass-reinforced polyethylene terephthalate, Reinforced polyamide MXD6 |
| 4. Capital: |
3 billion yen |
| 5. Equity participation: |
MCC: 50%; Mitsubishi Gas Chemical Co., Ltd.: 50% |
| 6. Net sales: |
156 billion yen (FY2006) |
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