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| June 22, 2006 |
| Mitsubishi Rayon Co., Ltd. |
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Notice of price raises on exports to East Asian
countries of METABLEN™ plastic modifier
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Mitsubishi Rayon hereby announces that it has determined the necessity to raise the prices of its exports to Asian countries of METABLEN, a modifier used with various plastics, all METABLEN products with effect from July shipments. The Company is currently negotiating with its main users. Details of the changes are given below.
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Name of product and margin of price raise
All METABLEN products (for export to Asian countries)
US$200 per ton
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Price change to take effect: for shipments on and after
July 1, 2006
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Demand for MBS resins in Asian countries, led notably by the vigorous increase in demand from China, has risen to the point where supply has become extremely tight. While Mitsubishi Rayon’s production facilities are continuing to operate at maximum capacity utilization, we have no leeway for additional output, and our inventories are thus dwindling rapidly. |
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| The Company implemented a price raise on METABLEN in the autumn of 2005, but since then, the prices of the principal raw materials of METABLEN - methyl methacrylate monomer, butadiene, and styrene monomer - have risen by wide margins, in addition to which fuel and transportation and distribution costs have also risen to the point where the profit margins on this business are being very tightly squeezed. |
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| Against this background, and in view of the Company’s need to return the profit margin on this business to an acceptable level, we have decided on the price raise described above. |
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| For further inquiries, please contact: |
| Public and Investor Relations Office |
| e-mail:
koho@mrc.co.jp |
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The contents shown herein are accurate as of the time of posting.
