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Showa Denko and KH Neochem Agree to Dissolve Ethyl Acetate JV


Showa Denko and KH Neochem Agree to Dissolve Ethyl Acetate JV

Tokyo, Nov 6, 2013 - (JCN Newswire) - Showa Denko (SDK) (TOKYO:4004) and KH Neochem Co., Ltd. (KHNC) have agreed to dissolve their joint venture, Japan Ethyl Acetate Co., Ltd. (JEA).

JEA was established in August 2003 for the purpose of strengthening the foundations of the two parent companies' ethyl acetate businesses. JEA began commercial production in April 2004.

While demand for ethyl acetate has grown inside and outside Japan since then, the business environment has changed dramatically, reflecting the rise in raw material costs and capacity expansions in neighboring countries.

Under the circumstances, SDK and KHNC have concluded, after mutual consultation, that it is difficult to continue JEA's operations. Thus, the two companies have agreed to stop ethyl acetate production at JEA, and dissolve the company.

Outline of the joint venture to be dissolved


Name:           Japan Ethyl Acetate Co., Ltd.
Head office     2, Nakanosu, Oita City, Oita Prefecture
                (in the premises of SDK's Oita Complex)
Establishment   August 20, 2003
Start of prod   April 1, 2004
Capital stock   JPY 100 million
Ownership       SDK 55%; KHNC 45%
Representative  President: Takashi Miyazaki
                (Managing Corporate Officer; General Manager,
                Petrochemicals Division, SDK)
Board           Three directors from SDK; and two directors from KHNC
Business        Production of ethyl acetate
Capacity        100,000t/y

Schedule

Production will be stopped by the end of 2014. After demolition and removal of the production facility, JEA will be dissolved and liquidated without delay.

About Showa Denko

Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods), electronic equipment (hard disks for computers) and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp .

Contact:

Showa Denko K.K. Public Relations Office Phone: 81-3-5470-3235

KH Neochem Co., Ltd. General Affairs Division Phone: 81-3-3510-3550

Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net

Provider ID: 00027959

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