| Mitsubishi Rayon Co., Ltd. has reached a basic agreement with Yoshino Gypsum Co., Ltd. to transfer to the company the operations of its consolidated subsidiary MRC Duracrete Co., Ltd. (hereafter Duracrete). Duracrete specializes in the import and sale of cement board products. The details are as follows. |
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| 1. Reasons for the transfer of Duracrete's operations |
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Duracrete was established in 2003 as a joint venture with USG Corporation (United States Gypsum Corporation), the world's largest maker of gypsum board, to undertake the import and sale of Duracrete-brand cement board products for interior and exterior applications manufactured by the U.S. company. The joint venture had made some inroads into Japan's home construction materials market with cement board systems, and had expanded sales of Duracrete products. Recently, however, both sales volumes and revenue have been hurt by such negative factors as intensified competition and the ongoing global economic slowdown.
Yoshino Gypsum is Japan's largest maker of gypsum materials for the construction materials market. Regarding the transfer of Duracrete's operations, Yoshino Gypsum aims to enhance marketing channels to stimulate demand for Duracrete's products, thereby strengthening their competitiveness. To this end, Yoshino Gypsum is expected to fully utilize its own nationwide sales network and distribution infrastructure, thereby strengthening its own overall competitiveness and raising its profitability. |
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| 2. Overview of MRC Duracrete |
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| a. Representative: |
Nobuo Ito, President & CEO |
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| b. Address: |
6-41, Konan 1-chome, Minato-ku, Tokyo |
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| c. Establishment: |
November 1, 2003 |
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| d. Paid-in capital: |
¥30 million |
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| e. Equity stakes of main shareholders: |
Mitsubishi Rayon 85%; USG 10%; Sumitomo Corporation 5% |
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| f. Lines of business: |
Import and sale of DURACRETER cement board for interior and exterior applications |
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| g. Sales: |
¥750 million (fiscal 2008) |
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| h. Number of employees: |
6 (as of March 31, 2009) |
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| 3. Overview of Recipient Company |
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| a. Company name: |
Yoshino Gypsum Co., Ltd. |
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| b. Representative: |
Eiichiro Sudo, President & CEO |
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| c. Address: |
3-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo |
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| d. Establishment: |
March 2, 1937 |
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| e. Paid-in capital: |
¥3,406 million |
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| f. Lines of business: |
Manufacture and sale of products that use gypsum as the raw material |
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| g. Sales: |
¥110,000 million (2008) |
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| h. Number of employees: |
900 |
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| 4. Overview of USG |
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| a. Representative: |
William C. Foote |
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| b. Head office location: |
Chicago, Illinois |
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| c. Establishment: |
1902 |
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| d. Lines of business: |
Manufacture and sale of gypsum wallboard, cement board, ceiling materials and other construction materials |
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| e. Sales: |
US$4,608 million (2008) |
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| Legal procedures for the transfer of operations are to be completed by March 31, 2010. MRC Duracrete Co., Ltd. will be dissolved following the completion of the business transfer. |
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