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| December 19, 2002 |
| Mitsubishi Rayon Co., Ltd. |
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Agreement Reached on Establishment
of Joint Venture to
Manufacture and Sell Petrochemical Products in China |
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An agreement has been reached among Mitsubishi
Rayon Co.,Ltd., Jiangsu Xinya Chemical Group Co., Ltd., Sinochem
Japan Co., Ltd., and Mitsubishi Corp. to establish a joint-venture
company in the city of Changzhou, Jiangsu, China for the production
and sale of methylamine (MA) and its derivative dimethylformamide
(DMF). The new company , whose name will be decided later, is
to be set up in February 2003 with a planned total investment
of approximately $20 million.
MA is used
in the manufacture of surfactants, flocculants, and agricultural
chemicals, and its derivative DMF is used widely as a solvent
in the manufacture of synthetic leather, pharmaceuticals, and
electronic materials. China is the greatest consumer of DMF,
using 35% or more of the world’s supply (approximately
360,000 tons) annually for the manufacture of synthetic leather
items such as shoes, belts, and briefcases. In recent years,
China’s consumption has been rising sharply at an annual
rate of 8 to 10%.
The highly cost-competitive,
advanced production technology with an annual production capacity
of 35,000 tons at our Yokohama Production Center makes us Japan’s
largest DMF manufacturer. By building an integrated production
system, including raw material procurement, for the new company
and its adjacent Jiangsu Xinya Chemical Group, which is China’s
largest DMF manufacturer, we will expand our share of the growth
market in China and East Asia.
The new
company is scheduled to begin commercialproduction by the autumn
of 2004, and at the end of three years we anticipate annual
sales of 2 to 3 billion yen. |
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| Outline of new company |
| 1. Name: |
To be decided |
| 2. Representative: |
Undetermined |
| 3. Location: |
No. 3 Xinye Road, Xinzha Town,
Changzhou, Jiangsu, China |
| 4. Paid-in capital: |
US$10 million |
| 5. Shareholders: |
Mitsubishi Rayon 51%
Jiangsu Xinya Chemical Group 40%
Mitsubishi Corp. 4.5%
Sinochem Japan 4.5% |
| 6. Line of business: |
Production and sale ofdimethylformamide
(DMF) and methylamine (MA) |
| 7. Production capacity: |
DMF 30,000 tons/year
MA 24,000/year |
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| For further information, please contact: |
Mitsubishi Rayon Co.,
Ltd. |
| Public & Investor Relations Office:
Tel: |
+81-3-5495-3100 |
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Reference Materials
(1) Outline of Jiangsu Xinya Chemical Group Co., Ltd. |
| 1. Location: |
No. 3 Xinye Road, Xinzha Town,
Changzhou, Jiangsu, China |
| 2. Date of establishment: |
July 1965 |
| 3. Representative: |
Zhu Xingchu, Chairman and President |
| 4. Paid-in capital: |
52,458,000 yuan (approx. ¥800
million) |
| 5. Net sales: |
239,720,400 yuan (approx. ¥3,600
million, fiscal 2001) |
| 6. Shareholder: |
Bureau of Trade and Industry,
Changzhou Province 100% |
| 7. Line of business: |
Production and sale of organic
and non-organic chemicals such as ammonia,
methanol, methylamine (MA), dimethylformamide
(DMF),
isopropylamine, formamide, hydrogen peroxide,
oxygen, hydrogen, and nitrogen |
| 8. Production capacity: |
Methylamine 12,000 tons/year
Dimethylformamide 15,000 tons/year |
| 9. Employees: |
approx. 1,900 |
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| (2) Outline of Sinochem Japan Co., Ltd. |
| 1. Location: |
SVAX Nishi-Shinbashi Bldg.,
2-39-3 Nishi-Shinbashi, Minato-ku, Tokyo |
| 2. Date of establishment: |
August 1985 |
| 3. Representative: |
Wang Jian, President |
| 4. Paid-in capital: |
100 million yen |
| 5. Shareholder: |
China National Chemicals Import
& Export Corporation 100% |
| 6. Net sales: |
¥31,200 million (fiscal
2001) |
| 7. Line of business: |
Agent in Japan for China National
Chemicals Import & Export Corporation |
| 8. Employees: |
approx. 20 |
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| (3) Outline of China National Chemicals Import
& Export Corporation (Sinochem) |
| 1. Location: |
Sinochem Tower, A2 Fuxingmenwai Dajie,
Beijing, China |
| 2. Date of establishment: |
1950 |
| 3. Representative: |
Liu Deshu, President and CEO |
| 4. Line of business: |
state-run trading company that imports
and exports petrochemical products |
| 5. Net sales: |
US$18,036 million (fiscal 2000) |
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