Mitsubishi Plastics, Inc. (Head Office: Chiyoda-ku, Tokyo; President: Takumi Ubagai) today announced it has resolved to conclude a comprehensive agreement to transfer our piping business to SEKISUI CHEMICAL CO., LTD. (hereinafter referred to as SEKISUI CHEMICAL) (Head Office: Osaka City, Osaka; President; Naofumi Negishi) at the Board of Directors’ Meeting held today.
The company will promptly make applications to the relevant authorities in Japan and after acquiring necessary approval the company will actually transfer the business. Following this business transfer, the company targets promoting further development of individual business operations that belong to the Environment & Life Material field and will continue to study the direction to restructure its business organization that is more compact in size and that enables better prompt decision-making. The details of this announcement are as follows:

 

1. Background and purpose of the transfer of the piping business
  

 We started the piping business in 1952, and through the manufacture and sales of piping products that play an important role as part of life infrastructure; we have contributed to creating an affluent society ever since that time. In the recent pipe-related market of Japan, however, adverse conditions have persisted due to the decreasing number of housing under construction and shrinking public investment projects. Under such business conditions, we have sought independent rehabilitation of the business, but in consideration of future tough business conditions, we have come to recognize that it is essential to address the issue beyond the framework of a single company. Under the circumstances, SEKISUI CHEMICAL, an important partner of our company, in terms of piping product manufacturing, has highly appreciated our technological strengths, sales power and human resources cultivated over many years and earnestly hopes to succeed and develop them. As we judged that integration of the two companies’ piping business operations and that it is the best means for a stable supply to the market and future development of the piping business that SEKISUI CHEMICAL will succeed the business as the leading manufacturer of piping, it was decided to transfer the piping business to SEKISUI CHEMICAL.

 

2. Details of business transfer

(1)Personnel, assets, agreements, intellectual properties, etc. associated with our piping business
*The above does not include our Piping business made of PE-X materials
(2) Personnel, agreements, etc. associated with the piping business of Mitsubishi Plastics Marketing Co., Ltd and Ryoju Corp.
(3) Part of machine facilities associated with the piping business of Ryobi Techno Inc.
(4) Shares of the following piping-related companies Mitsubishi Plastics owns
・Toyo Plastics Industries Corp.
・Hanyu Plastics Industries Ltd.
・Wuxi SSS Diamond Plastics Co., Ltd.
・M&S Pipe Systems Co., Ltd.

 

 

3. Schedule for the business transfer (planned)
July 10, 2012  Conclusion of the comprehensive agreement; application to Japan Fair Trade Commission (submission of plan regarding the transfer of business, etc.)
Within this fiscal year (fall to winter) Completion of business transfer (Date of transfer to be determined after approval by relevant authorities)

 

 

4. Future development of the Environment & Life Material field
 It is essential for the Environment & Life Material field to build close relationships with a wide range of customers and reflect their needs promptly upon new products and services. For this reason, following the transfer of the piping business, we plan to restructure the organization of the business field so that for further development it can be compact in size and enable quick decision-making. To be precise, we will continue to study the prospect of establishing an integrated manufacturing and sales system by integrating individual operations such as piping made of PE-X materials, facilities/equipment and civil engineering materials with Mitsubishi Plastics Marketing, our sales affiliate.

 

Outline of company concerned

Company Name	SEKISUI CHEMICAL CO., LTD.	Mitsubishi Plastics, Inc.
Address	2-4-4 Nishitenma, Kita-ku, Osaka City, Osaka	(Palace Bldg.) 1-1,Marunouchi 1-Chome, , Chiyoda-ku, Tokyo
Representative	President Naofumi Negishi	President & CEO Takumi Ubagai
Month and Year of Establishment	March 1947	January 1943
Capital	100,000 million yen	21,503 million yen
Principal Business	(i) Manufacture and sales of Pipes and engineering plastics for water supply and drainage systems, building materials, and performance materials (ii) Manufacture and sales of automotive materials, electronic materials, medical products, and other high performance plastics-related products (iii) Manufacture and sales of modular houses, and remodeling business	Manufacture and sales of plastics products
Sales	965 billion yen (on consolidated basis for fiscal year ended March 2012)	379 billion yen (on consolidated basis for fiscal year ended March 2012)
Number of Employees	20,855 (on consolidated basis for fiscal year ended March 2012)	8,831 (on consolidated basis for fiscal year ended March 2012)

* There are no capital or personal ties between the companies concerned.

 

 

Outline of company whose business will be taken over (acquisition of associated business or machinery and equipment only)

Company Name	Mitsubishi Plastics Marketing Co., Ltd.	Ryoju Corp.
Address	1-2-2,Nihonbashihongoku-cho, Chuo-ku, Tokyo	5-6-10,Ueno, Taito-ku, Tokyo
Representative	President Ryohei Ogawa	President Shinji Koshino
Month and Year of Establishment	July 2010	November 1955
Capital	4 million yen	3.5 million yen
Principal Business	Sales of Mitsubishi Plastics products	Sales of plastics and plastic products
Stockholders	Mitsubishi Plastics: 100%	Mitsubishi Plastics: 100%
Number of Employees	Approx. 280	Approx. 120

 

 

Company Name	Ryobi Techno Inc.
Address	1 Tsukigase-cho, Nagahama City, Shiga Prefecture
Representative	President Takehiko Watanabe
Month and Year of Establishment	August 1965
Capital	4 million yen
Principal Business	Manufacture and sales of plastic products
Stockholders	Mitsubishi Plastics: 100%
Number of Employees	Approx. 180

 

 

Outline of company whose stocks will be bought out (as of July 10, 2012)

Company Name	Toyo Plastics Industries Corp.	Hanyu Plastics Industries Ltd.
Address	300,Kamijoaraimachi, Kofu City, Yamanashi Prefecture	392 Kami-iwase,Oaza, Hanyu City, Saitama Prefecture
Representative	President Yoshihiro Fujimi	President Ryuichiro Nakamura
Month and Year of Establishment	May 1955	May 1918
Capital	130 million yen	200 million yen
Principal Business	Manufacture and sales of injection, extrusion and blow molded products	Manufacture and sales of extrusion molding products
Stockholders	Mitsubishi Plastics Group: 100%	Mitsubishi Plastics: 99.8%
Number of Employees	Approx. 90	Approx. 70

 

 

Company Name	WUXI SSS-DIAMOND PLASTICS CO., LTD.	M&S Pipe Systems Co., Ltd.
Address	Wuxi National High & New Technology Industrial Development Zone, Wuxi, Jiangsu	(Shimbashi TS Bldg.) 1-22-5 Nishi Shimbashi, Minato-ku,Tokyo
Representative	President & CEO Tsutomu Nakamura	President Takashi Hariu
Month and Year of Establishment	June 2002	April 2002
Capital	4 million U.S. dollars	20 million yen
Principal Business	Manufacture and sales of plastic joints	Consultation for manufacturing and shipping pipes and joints
Stockholders	Sekisui Chemical; 51%, Mitsubishi Plastics: 49%	Sekisui Chemical: 51%, Mitsubishi Plastics: 49%
Number of Employees	Approx. 150	2

 

 

 

For further information please contact:
Public Relations and Investor Relations office,
Mitsubishi Chemical Holdings Corporation.
TEL: +81-3-6748-7140