Business Alliance with SK Chemicals Co., Ltd.

 Mitsubishi Rayon Co., Ltd. (Head office: Tokyo, Japan; President: Hitoshi Ochi, hereinafter “MRC”) announce formation of a strategic business alliance with SK Chemicals Co., Ltd. (Head office: Gyeonggi-do, Korea; Vice Chairman : Ｃhang-Ｇeun Kim, hereinafter “SK”) in order to develop and expand carbon fiber prepreg business in Asian countries.
 
 The purpose of the alliance is to create synergy in manufacturing and development of carbon fiber and composite materials owned by both companies in the following fields.

• MRC and SK conclude a long term supply agreement of carbon fibers and MRC stably supply the carbon fibers to SK.
• MRC consign SK to manufacture prepregs with MRC’s carbon fibers and MRC promote the consigned prepregs to own customers and golfshafts production. The prepregs are made at SK’s plants in Ulsan, Korea and Qingdao, China.
• MRC and SK expand cooperative development and manufacturing of carbon fiber prepregs for industrial applications. As the first step of the collaboration, commercial production of the heavy-weight prepreg for wind energy blades will be newly commenced at SK’s Ulsan plant.

 
 Global carbon fiber demand is now estimated to reach 40,000MT per year level in 2012 - 2013 periods. From middle to long term viewpoint, an annual growth rate of 15% is expected mainly in industrial markets. Especially in Asian market, in addition to conventional sports & leisure application, the demand in industrial market like large scale of wind power generators will be increased.
 
 Through above agreed strategic partnership, MRC and SK progress the cooperation in the consigned prepreg manufacturing and new prepreg development based on the continuous carbon fiber supply, and enhance foundation which contributes to expansion of each company’s carbon fiber and composite business in the growing market.
 
[Basic Information on SK Chemicals Co., Ltd.]

1. Company Name: SK Chemicals Co., Ltd.
2. Representative : Chang-Geun Kim　(Vice Chairman)
3. Company Address: 686 Sampyeong-dong, Bundang-gu, Seongnam-si, Gyeonggi-do 463-400, Korea
4. Foundation: July, 1969
5. Capital: 118,301 million of Won (as of December 31, 2011)
6. Sales: 1,546,108 million of Won (as of December 31, 2011)
7. Main Business: Chemicals (co-polyester resin, high performance plastics, carbon fiber composite, biodiesel), life science (medicinal product, vaccine etc)

 
[Basic Information on Prepreg]
 Prepreg is one of the major intermediate materials using carbon fiber. It is a sheet of carbon fibers evenly impregnated with epoxy resin. It has long been used for body of aircrafts, leisure and sporting goods such as golf shafts. Recently its application expanded to automotive parts and wind turbine blades. In case of the wind blade application, dozens of a prepreg layer which weight becomes more than 1kg/m² are laminated to make one composite product and large tow carbon fibers made from MRC’s new factory are very much suitable for the application.