On May 14th, Mitsubishi Plastics, Inc. ("MPI"; head office: Chuo-ku, Tokyo; president: Hiroshi Yoshida) signed an agreement that MKV Platech Co., Ltd. ("MKV Platech"; head office: Chuo-ku, Tokyo; president: Katsutoshi Ogihara), a consolidated subsidiary of MPI, will take over the agricultural high-tech business of Taiyo-Kogyo Corporation, which is under civil rehabilitation proceedings. See below for details.

1. Background and Rationale for Transfer of Business
MKV Platech, Marui Kako, and Agridream, which are consolidated subsidiaries of MPI, had been manufacturing and selling agricultural films and other agricultural materials; these three companies plan to merge on July 1st, 2009 in order to strengthen the foundation of their agricultural materials business, expand their business, and accelerate the development of new products. The newly formed company (name to be determined) will be a core player in the agricultural materials business.
Meanwhile, Taiyo Kogyo, which is currently undergoing civil rehabilitation proceedings, has an agricultural high-tech business that develops and sells institutional gardening systems, such as hydroponic systems and closed transplant production systems, and the market for these systems is expected to grow.
The Mitsubishi Plastics Group signed the agreement to transfer this business to MKV Platech because it judges that developing Taiyo Kogyo's agricultural high-tech business, which has future potential, at a new company planned for incorporation in July will create synergy between its agricultural materials business and the agricultural high-tech business, and enable the group to further develop and accelerate them.

2. Overview of Business Transfer Agreement
(1) Acquisition price: Approximately YEN660 million
(2) Date of transfer: June 1st, 2009 (planned)

3. Overview of Agricultural High-tech Business to Be Transferred
(1) Division names: Agricultural High-tech Dept. and Agricultural Development Dept.
(2) Net sales:  About ¥2 billion/year
(3) Personnel: About 30
(4) Main lines of business:

　Agricultural High-tech Dept.:
　・Sale of hydroponic systems and related materials
　・Sale of closed transplant production systems
　・Sale of ultra-durable agricultural film
　Agricultural Development Dept.:
　・Product development and strategic planning

4. Future Developments
The three consolidated subsidiaries intend to transform into an agricultural solutions business that combines hardware with systems and knowledge, by adding the hydroponic systems (proposal of hydroponics expertise) of Taiyo Kogyo, which have future potential, to the three companies' hardware side of agricultural materials, with a focus on agricultural films.
These three companies also aim to expand and grow their agricultural business by leveraging the agricultural high-tech business to accelerate the development of new products. On example is the early commercialization of low-cost plant factories that use hydroponic systems combining LEDs with sunlight.

 

●Photo: A hydroponic system is used to grow leafy vegetables

 

 

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	Public Relations Section, General Administration Dept., Mitsubishi Plastics Inc. TEL: +81-3-3279-3800