MITSUBISHI PLASTICS, INC. (MPI, Head Office:Chuo-ku, Tokyo; President:Hiroshi Yoshida) is planning to have a production and sales subsidiary in Suzhou, Jiangsu Province, China, and an investment subsidiary in Japan, under the circumstances that a demand for the Film for Flat Panel Display (FPD) has still been expanding.  We will submit a completed application form to Chinese authority according to the local rules and will proceed with preparation for an early start-up.

１．Backgrounds and Purposes
A demand for Optical Polyester Film for FPD has been growing as compact TVs have
increasingly sold and a screen size has become larger. 
MPI has been reinforcing the existing facilities, and establishing new lines which
completed in March this year in order to respond to such a positive demand.  The
demand is likely to have a steady growth as new plants for LC Panel makers will
sequentially start operating by 2012.  Considering the current internal and external
situation, MPI has decided, in order to further strengthen Polyester Film business,
to establish an investment firm in Japan and a sales & production subsidiary in
Suzhou, Chiangsu Province, China, to newly set up two optical Polyester Film production lines with an annual capacity of over 20,000 tons, reaching the world largest class. 
The total of the investment including construction, operation is expected to amount 24
billion yen. 

２．Production & Sales Subsidiary in China (Provisional)
（１）Name:   To be decided
（２）Location:   Suzhou, Jiangsu Province, China
（３）Representative:  To be decided
（４）Paid-in-capital:  8.4 billion yen (See*1)
（５）Ratio of Capital:  Wholly-owned subsidiary of a new investment
     subsidiary in Japan, stated under the following 3
（６）Date of Establishment January 2011
（７）Capacity:   45,000 tons per year (Total of two lines)
（８）Launch:   April 2013 (Line 1)
    April 2015 (Line 2)

 *1:  Payment for the said investment will be made according to the condition of permit
approval.

３．Investment Subsidiary (Provisional)
（１）Name:   To be decided
（２）Location:   Chuo-ku, Tokyo
（３）Representative:  To be decided
（４）Paid-in-capital:  8.5 billion yen (See *2)
（５）Ratio of Capital:  Wholly-owned subsidiary of MPI (See *3)
（６）Date of Establishment: October 2010

*2:  Capital increase will be made up to 8.5 billion yen in accordance with a demand for funds of
the Production & Sales Subsidiary.
*3:  The Investment Subsidiary will possibly receive capital contribution from other
entities which have no capital or human-affiliated relationship with MPI, up to 20%, so that the business in China can be effectively and promptly implemented.

４．Future Outlook
It is expected that the Production & Sales Subsidiary in China will have sales amount of about 20 billion yen on annual basis after the two lines start operating.  MPI will produce and sell the high-performance products in response to our customers’ high-level requirements in China and will swiftly serve the needs from Asia to build reliance with our customers for a stable position as a world-leading company of Optical Polyester Film.

 

 

 

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