Mitsubishi Rayon Co., Ltd. plans to set up an
acrylic fiber manufacturing and sales company in the city of
Ningbo, Zhejiang Province, China. The new subsidiary, establishment
of which has been approved by the Chinese authorities, will
be established in February 2003 with a total investment of approximately
$100 million. The Company's partners in this joint venture are
to be the Ningbo United Investment Holding Corp., Ltd., and
the three Japanese trading companies Mitsubishi Corp., Itochu
Corp., and Marubeni Corp.
Acrylic fibers
are popular for their pleasant feel, easy colorability, and
durability. They are extensively used in clothing such as sweaters,
underwear, and socks, as well as other textile products like
stuffed toys, blankets, carpets and other interior goods. Acrylic
fiber consumption in China amounted to around 960,000 tons in
2002. Total demand should reach 1,050,000 tons or thereabouts
by 2005, partly due to rising demand for reprocessing for export
following China's membership of the WTO, among other favorable
factors.
In addition to filaments, as
well as wet-spun and dry-spun staple, Mitsubishi Rayon? acrylic
fiber operations also encompass artificial suede products. Mitsubishi
Rayon is the world's only manufacturer to offer such a wide
range of acrylic fiber products. With an annual production capacity
of 136,000 tons of raw acrylic fiber at the Otake Production
Center, the Company is Japan's largest producer of acrylic fiber
products. Our many years’ experience in the manufacture
of acrylic fibers, combined with precise, cutting-edge technology
and strong cost-competitiveness, have produced a lineup of high-quality,
value-added products that have won us an excellent reputation
both in Japan and overseas.
The new joint
venture in China is part of the Company’s strategy aimed
at becoming the world’s top maker in both acrylic staple
and acrylic filaments by trengthening its operational base and
improving profitability.
The new company
will start commercial operation in July 2005, with annual sales
envisaged at approximately ¥8-9 billion three years later. |
|
| Outline of Company: |
| Name (tentative): |
Ningbo Rayon Acrylic Fibers Co.,
Ltd. |
| President: |
To be decided |
| Address: |
Qingzhi Park, Ningbo Economic &
Technical Development Zone, Beilun Ningbo, Zhejiang,
China |
| Paid-in capital: |
US$50 million |
| Investment stakes (subject to change): |
| Mitsubishi Rayon Co. Ltd. |
55% |
| Mitsubishi Corp. |
10% |
| Itochu Corp. |
10% |
| Marubeni Corp. |
10% |
Ningbo United Investment
Holding
Corp., Ltd. |
15% |
|
| Business line: |
Manufacture and sale of acrylic
fibers |
| Production capacity: |
50,000 tons per annum |
|
|
|
