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| November 7, 2011 |
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| Dissolution and Merger of Vinyl Chloride Compound JV in North America |
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| Mitsubishi Chemical Corporation |
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Mitsubishi Chemical Corporation ("MCC"; Head office: Minato-ku, Tokyo; President: Yoshimitsu Kobayashi) announced today that MCC and A. Shulman, Inc. ("ASI") have agreed to dissolve and liquidate their joint venture (JV), THE SUNPRENE CO. ("Sunprene"), which is engaged in vinyl chloride compound business in North America, and to transfer the JV's business to the MCC Group.
Sunprene was established in 1988 with a joint investment by MCC's wholly-owned subsidiary, MKV America, Inc. ("MKV America"), and ASI's wholly-owned subsidiary, ASI Investments Holding Co. Since then, it has supplied vinyl chloride compounds to industrial customers in North America, mainly in the automotive sector, using MCC's vinyl chloride compound technology and ASI's marketing capabilities. However, due to a change in ASI's business strategy which has made Sunprene non-strategic to ASI, ASI proposed to dissolve the joint venture. As a result of discussions, the two parties have decided to dissolve and liquidate Sunprene at the end of December 2011. With the dissolution of Sunprene, MKV America will be liquidated, as well.
For MCC, North America is a leading auto industry market and the vinyl chloride compound business holds considerable growth potential. MCC therefore has decided to take over the business of Sunprene, which will be transferred to MCC's subsidiary, Mitsubishi Chemical Performance Polymers, Inc., which is engaged in the non-vinyl-chloride performance polymer business in North America.
The dissolution of Sunprene and transfer of its business will enable the MCC Group to offer total solutions in the performance polymer market in North America, while setting the stage for further growth in the performance polymer business.
| For further information, please contact |
Public Relations Department
Mitsubishi Chemical Corporation |
| Tel: [+81] (0)3-6414-3730 |
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