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| December 9, 2002 |
| Mitsubishi Rayon Co., Ltd. |
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Mitsubishi Rayon to Establish Acrylic
Sheet
Production Company in China |
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Mitsubishi Rayon Co., Ltd. hereby announces that
it will establish a wholly-owned subsidiary in China, by the
end of this December, under the name Mitsubishi Rayon Polymer
Nantong Co., Ltd. The new company, in Nantong, Jiangsu Province,
will manufacture and sell acrylic resin sheets utilizing a highperformance
continuous production method developed by us. It will be the
first company of its type not only in China, but in the whole
of Asia excluding Japan. Initial investment in the new company
will amount to US$30 million, and it hopes to start operation
by May 2005. Production capacity will be 20,000 tons per annum
initially, with only one production line. The state-of-the-art
production facilities will be of the world's largest scale for
a single production line. This will allow the company to supply
Mitsubishi Rayon's specialty acrylic sheets for light guide
panels and other optical-use products to meet growing demand
in the IT sector in East Asia.
Mitsubishi
Rayon plans to make optimal use of its specialty -- in-house-developed
high-performance continuous sheet production -- which boasts
an overwhelming superiority in terms of product quality and
production volumes. The Company boasts the largest acrylic sheet
production scale in Japan and one of the largest in Asia, and
the latest move will greatly strengthen the Company's presence
on the Asian mainland. |
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| 1. Background to Establishment
of New Company |
China is the largest market for acrylic
sheet in Asia excluding Japan. With the rapid growth of the
economies and industries of China's coastal regions in recent
years, as well as the push to upgrade Beijing? telecommunications
infrastructure ahead of the 2008 Olympics, many overseas companies
-- particularly from Japan, South Korea, and Taiwan -- have
been setting up shop in China to supply the country's insatiable
demand for IT-related products and materials. There had thus
been a growing need for a more capable producer of high-end
acrylic sheet. For example, up until now, production of monitors
used in the IT field has been carried out mainly through the
assembly of imported components, but companies are now moving
to build integrated, start-to-finish production systems. Demand
for acrylic sheets for light guide panels is predicted to take
off dramatically in China. Production of acrylic sheets in China
is still mainly by the cell-cast method, which has limited the
supply of high-end products.
Apart from being right next door to Shanghai's
Pudong district, where there is a high concentration of IT sector
companies, Nantong has the competitive advantage of being on
the coast, with an excellent port that facilitates the transport
of goods by sea to high-demand areas such as Beijing to the
north and Hong Kong to the south.
Construction has already started on a plant
next door for the production of acrylic resin pellets, which
will start operations (supply to other customers) in the autumn
of 2003. The existence of this plant was one of the factors
that decided the management of Mitsubishi Rayon to locate the
new company in Nantong.
Mitsubishi Rayon's core business segment is
its MMA Business Complex, which focuses on the manufacture of
methyl methacrylate (MMA) monomer and its copolymers (MMA resins).
The Company aims to establish a comprehensive and synergistic
"MMA Chain," encompassing upstream and downstream
operations. We believe that this will constitute a competitive
advantage and become the driving force for growth. By leveraging
its tripartite system of production centers based on Japan,
Thailand, and China, Mitsubishi Rayon is committed to maintaining
its position as the leading company in this field in East Asia,
with the ultimate goal of becoming No.1 in the world. |
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| 2. Outline of New Company |
| Name: |
Mitsubishi Rayon Polymer Nantong
Co., Ltd. |
| Location: |
Nantong Economic and Technical Development
Zone, Nantong, Jiangsu Province, People's Republic
of China |
| Line of business: |
Manufacture and sale of acrylic sheet |
| Establishment: |
December 2002 |
| Start of operation: |
May 2005 |
| Paid-in capital: |
US$16 million (approx. ¥1,920
million) |
| Shareholders: |
Mitsubishi Rayon Co., Ltd. (100%) |
| Production capacity: |
20,000 tons per annum |
| Sales targets: |
¥5,000 million by the third
year of operation |
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| For further informaiton,please contact
to: |
Mitsubishi Rayon Co., Ltd.
Public & Investor Relations Office:
Tel: +81-3-5495-3100 e-mail : koho@mrc.co.jp |
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