Formation of new joint venture company for sales and manufacturing of polyolefin bicomponent fibers in China

December 12, 2011

JNC Corporation (Chiyoda-ku, Tokyo, CEO Mr. Michio Morita, hereinafter "JNC") and FiberVisions Corporation (Georgia, USA, CEO Dr. Stephen Wood, hereinafter "FiberVisions") will jointly establish a sales and manufacturing company of polyolefin bicomponent fibers in Jiangsu Province, China through its subsidiary, JNC Fibers Corporation.

The product family is well known as "ES Fiber". ES Fiber is a fiber made of two thermo-plastic polymers having different melting points and the was firstly commercialized by Chisso Corporation before JNC succeeded all businesses as at April 1, 2011.The fiber can be converted into nonwoven by heating up without adhesives and nonwoven fabric made thereof is soft and bulky. Nonwoven made of ES Fiber is widely used in hygiene products such as baby diapers, wet wipes and feminine care products.

JNC already has a partnership with FiberVisions through ES FiberVisions global joint venture, a sales company of ES fibers. This new joint venture is intended to strengthen our partnership in line with our strategy and will increase ES FiberVisions' capacity in Asian and Chinese market.

<Overview of the joint venture company>
Company name                     : ES FiberVisions Suzhou Co., Ltd.
General manager                   : Fuyuan Deng
Plant location                        : Suzhou New District, Suzhou,
                                                Jiangsu Province, China
Investors and investment ratio: JNC Corporation 50%,
                                                FiberVisions A/S (Denmark) 50%
Business scope                      : Sales and manufacture of thermo-
                                                bondable polyolefin bicomponent fibers
Capacity                               : 14,000t/y
Regisered capital                    : 12 million USD
Formation of the company      : May, 2012

<FiberVisions Corporaiton>
FiberVisions is the largest producer of PP monocomponent fiber and headquarted in Georgia, USA and has manufacturing sites in the USA, Denmark, and China. FiberVisions and JNC have a partnership in ES FiberVisions joint venture for sales of bicomponent fibers worldwide since 2000.

<Location of manufacturing sites and offices>
Sales offices of bicomponent fibers
     ES FiberVisions Co.,Ltd. / Osaka, Japan
     ES FiberVisions Hong Kong Ltd./Hong Kong
     ES FiberVisions China Ltd. / Guangzhou, China
     ES FiberVisions ApS / Varde, Denmark
     ES FiberVisions LP / Georgia, USA

Manufacturing sites of bicomponent fibers
    JNC Fibers Corporation / Shiga, Japan
    Guangzhou ES Fibers Co.,Ltd. / Guangzhou, China
    FiberVisions A/S / Varde, Denmark
    FiberVisions Corporation / Georgia, USA

Manufacturing sites of nonwoven
    JNC Fibers Corporation / Shiga, Japan
    Guangzhou ES Fibers Co.,Ltd. / Guangzhou, China
    Chisso ES Asia Co.,Ltd. / Changshu, China