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| January 25, 2007 |
| Mitsubishi Rayon Co., Ltd. |
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Plans for increased MMA monomer production facilities and
new acrylic sheet plant at Thai MMA Co., Ltd.
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Mitsubishi Rayon Co., Ltd. (Head office: Minato Ward,Tokyo,President:
Masanao Kambara) and SCG Chemicals Co., Ltd.
(the petrochemicals arm of the Siam Cement Group.
Head office: Bangsue,Bangkok,Thailand,President: Cholanat Yanaranop) have reached an agreement to invest in the expansion (construction of a second production line) of the methyl methacrylate (MMA) monomer plant operated by Thai MMA Co., Ltd. (a joint venture between the two companies), as well as in the construction of a new plant for the production of acrylic resin sheets. The total investment will be on the order of ¥25-30 billion. Details are as follows:
Outline of plans for expansion of existing plant and construction of new plant
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| 1. MMA monomer (expansion of production facilities) |
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Production capacity: 90,000 tons/year (combining with existing No. 1 production line for total capacity of 180,000 tons/year |
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Scheduled start of production:
2nd quarter of 2010
Production method: Direct oxidation process
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| 2. Acrylic sheets (new plant) |
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Production capacity: 20,000 tons/year
Scheduled start of production: 4th quarter of 2009
Production method:
Continuous casting method |
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| Background to Decision |
The Mitsubishi Rayon Group is the largest maker of MMA products in Asia, operating a comprehensive upstream-to-downstream supply operation covering everything from the production of MMA monomer through polymers (Acrylic resins, Acrylic sheets, Coating resins , among others) at plants in Japan, China, and Thailand. The sheer scale of our operations, and the synergies generated between the various businesses, enable the Mitsubishi Rayon Group to supply products at competitive costs and service of unrivalled quality.
Demand for MMA monomer and MMA polymers in East Asia has remained strong over the past few years, against the backdrop of brisk business in the IT sector and the automotive industry, among others. To ensure sufficient production capacity to meet this demand, in December 2006 the Group started operation of a new MMA monomer plant in the Chinese city of Huizhou (Guangdong Province). However, in view of projections that demand for MMA monomer will continue to grow, the Group’s management have been considering various strategies for expanding the scale of operations in East Asia.
The implementation of the just-announced plans to expand MMA monomer production facilities at Thai MMA Co., Ltd. and to build a new plant under the management of Thai MMA for the production of acrylic sheets will strengthen the Group’s business foundations in the field of MMA for the East Asian market. |
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| Outline of Thai MMA Co., Ltd. |
| President |
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Takashi Ikegami |
| Address |
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1 Siam Cement Road, Bangsue Bangkok 10800, Thailand |
| Lines of business |
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Production and sale of MMA (methyl methacrylate) and BMA (butyl methacrylate) |
| Production capacities |
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MMA, 90,000 tons per annum; BMA, 10,000
tons per annum |
| Paid-in capital |
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1.3 billion Thai baht |
| Shareholders |
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Mitsubishi Rayon (45%); SCG Chemicals Co., Ltd. (45%); others (10%) |
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| For further inquiries, please contact: |
| Public and Investor Relations Office |
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The contents shown herein are accurate as of the time of posting.
