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| May 29, 2009 |
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| MCC and DSM Consider Exchanges in High-performance Products |
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Mitsubishi Chemical Corporation
Royal DSM N.V. |
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Mitsubishi Chemical Corporation (MCC; Head office: Minato-ku, Tokyo; President: Yoshimitsu Kobayashi) and Royal DSM N.V. (DSM; Head office: Heerlen, the Netherlands; Chairman: Feike Sijbesma) announced the signing of a memorandum of understanding (MOU) on the exchange of high-performance product businesses. Under the MOU, MCC will exchange its nylon business, operated mainly in Japan and Asia by MCC and Mitsubishi Engineering Plastics Corporation (MEP; Head office: Chuo-ku, Tokyo; President: Yasuhiko Kijima; Equity participants: Mitsubishi Gas Chemical Co., Inc. [50%] and MCC [50%]) for a polycarbonate business operated mainly in Europe by DSM Engineering Plastics (DSM EP; Head office: Sittard, the Netherlands; President: Roelof Westerbeek; Equity participant: DSM [100%]). The companies have started a detailed study of the exchange, aiming for reinforcing each company's competitiveness.
Under the current severe economic environment, MCC has moved aggressively to restructure its petrochemicals businesses by focusing on core operations. MCC has positioned the polycarbonate business as one of the existing growth businesses in the current mid-term management plan, and developed it on a global scale in anticipation of further growth in the automotive, information, and electronics industries. By acquiring the polycarbonate business operated by DSM, MCC and MEP can develop their polycarbonate business, especially high-value-added compounds developed by DSM in Europe and Asia, which will give them opportunities to further expand the business.
On the other hand, DSM has positioned the nylon business as one of its core fields. The acquisition of the nylon business operated by MCC and MEP will enable DSM to strengthen the service and innovation capabilities it offers to the automotive, electrical, and flexible packaging markets, not only in Europe and the United States but also in Asia, especially in Japan and China. This will also strengthen DSM's position as a world-leading manufacturer of nylon for engineering plastics. DSM started manufacturing nylon in China last year.
Net sales in each of the businesses was approximately 12 billion yen (90 million euro) in fiscal year 2008.
When the exchanges are executed, MCC and MEP will produce nylon and related compounds in Japan for DSM Japan K.K. (Head office: Minato-ku, Tokyo; President: Leon Halders; Equity participation: DSM EP [100%]), and DSM EP will produce polycarbonate compounds for MCC and MEP. Both companies will establish continued mutual cooperative ties in sales and technical service.
Pending the results of the study, MCC and DSM plan to complete the business exchange within this year.
Corporate profile of DSM
| Net sales: |
9.3 billion euro (about 1,200 billion yen) |
| Employees: |
23,500 |
| For further information, please contact |
Public Relations and Investor Relations Department
Mitsubishi Chemical Corporation |
| Tel: +81-(0)3-6414-3730 |
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