Integration of Polypropylene Compound-Related Businesses

April 30, 2013

Mitsubishi Chemical Corporation (MCC; Head office: Chiyoda-ku, Tokyo; President: Hiroaki Ishizuka), Japan Polychem Corporation (JPC; Head office: Chiyoda-ku, Tokyo; President: Masayuki Miyasaka) and JNC Corporation (JNC; Head office: Chiyoda-ku, Tokyo; President: Michio Morita) decided to transfer the Polypropylene Compound (PPCP) Business held by each party and the FUNCSTER (a thermoplastic resin reinforced with long glass fibers) Business held by JNC to Japan Polypropylene Corporation (JPP; Head office: Chiyoda-ku, Tokyo; President: Mikio Fukagawa) that is a polypropylene joint venture between JPC and JNC Petrochemical Corporation (Head office: Chiyoda-ku, Tokyo; President: Michio Morita), a fully-owned subsidiary of JNC for integration purposes, upon receipt of approval from the authorities in each relevant country.

With the expansion of overseas production and sales, the automobile industry, which the PPCP Business and FUNCSTER Business deals with, has an intensifying demand for stable supplies of materials of consistently high quality irrespective of the region. On the other hand, MCC, JPC and JNC have been independently engaged in the PPCP Business and the FUNCSTER Business even after JPP was established in 2003. Now these businesses will be integrated into JPP with the aim of unifying the businesses both in Japan and abroad. This will include unification of the distribution networks used by each of the PPCP Businesses and a simultaneous supply of FUNCSTER to companies in the Japan-U.S.-China trilateral framework with the aim of ensuring simultaneous supplies of highly functional materials of globally consistent quality.

Both the PPCP Business and FUNCSTER Business are positioned as important strategic businesses for JPP. Through this business integration, JPP is expected to play an important role in expanding the business in line with the growing global market to enable it to act as a global supplier of highly functional materials.

【Overview of Businesses Subject to Integration】

Company name:   Mytex Polymers US Corp.
Head office:     Jeffersonville, IN, USA
Plant:         Same as above
Production capacity: 73 thousand tons per year
Business outline:   Manufacture and sales of polypropylene compounds

Company name:   Mytex Polymers (Thailand) Co., Ltd.
Head office:     Bangkok, Thailand
Plant:         Amata Nakorn, Thailand
Production capacity: 15 thousand tons per year
Business outline:   Manufacture and sales of polypropylene compounds

     

Company name:   Mytex Polymers India Pvt. Ltd.
Head office:     Gurgaon, Haryana, India
Plant:         Neemrana, Rajasthan, India
Production capacity: 10 thousand tons per year
Business outline:   Manufacture and sales of polypropylene compounds

     

Company name:   Beijing Ju-Ling-Yan Plastic Company Limited
Shareholders:    Mitsubishi Chemical Corporation: 55%
           Yanshan Petro Chemical Industry Corporation: 40%
            and Toyota Tsusho Corporation: 5%
Head office:     Beijing (China)
Plant:         Beijing and Foshan
Production capacity: 66 thousand tons per year
Business outline:   Manufacture and sales of polypropylene compounds

     

Company name:   COMUSA LLC
Head office:      Covington, GA, USA
Plant:         Same as above
Production capacity: 10 thousand tons per year
Business outline:   Manufacture and sales of FUNCSTER

     

Company name:   JNC Polyfine Asia (Changshu) Co., Ltd.
Head office:     Changshu (China)
Plant:          Same as above
Production capacity: 7 thousand tons per year
Business outline:   Manufacture and sales of FUNCSTER

     

Company name:   JNC Polyfine Co., Ltd.
Head office:     Chiyoda-ku, Tokyo
Plant:          Ichihara City, Chiba Prefecture
Production capacity: PPCP: 17 thousand tons per year; and FUNCSTER: 15
           thousand tons per year
Business outline:   Manufacture of polypropylene compounds and FUNCSTER