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
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 .
Showa Denko K.K.
Public Relations Office
KH Neochem Co., Ltd.
General Affairs Division
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