Nippon Polyurethane Industry Becomes Tosoh Subsidiary
Essential Move to Advancing Vinyl Isocyanate Operations
Tokyo, Japan – Tosoh Corporation announced that it will raise its stake in Nippon Polyurethane Industry Co. Ltd. (NPU) to 51% from the current 35% by acquiring NPU shares held by affiliate, Hodogaya Chemical Co. Ltd. The move further accelerates Tosoh’s vinyl-isocyanate strategy and strengthens ties as the Company positions to establish a more competitive presence in the rapidly expanding polyurethane industry of Asia and especially China.
NPU, with annual sales of approximately JPY 70 billion (USD 596 million), is a leading supplier of feedstock to the polyurethane industry in Japan and Asia, and maintains the largest production capacities within the Asia Pacific region for several key products, such as MDI* , TDI, and isocyanate derivatives. Polyurethanes markets are strong in the Asian region where total annual demand is expected to grow by almost 10%.
Tosoh and NPU achieve cost competitiveness through vinyl isocyanate chain operations. Tosoh supplies essential raw materials such as aniline, carbon monoxide, and chlorine to NPU, and in turn receives hydrogen chloride to supply the production of vinyl chloride monomer (VCM). This exchange increases the competitive power of overall vinyl chain operations. A new NPU 200,000 MT/Y MDI plant, which is slated for completion in October of 2007, is being constructed at Tosoh’s Nanyo Complex. In connection with this construction, Tosoh is considering additional expansion of its facilities for production of important MDI precursors such as aniline and carbon monoxide.
In addition to the equity increase in NPU, Tosoh will strengthen ties with Hodogaya Chemical through a share increase from 24% to 33%. Hodogaya will issue ordinary shares on April 19th through a third-party placement, and Tosoh will purchase the allocation. This is expected to support new investments in growth sectors such as electronic materials and improve Hodogaya’s financial position. A total of 10.05 million shares will be issued at JPY 620 (USD 5.28).
As one of the largest chlor-alkali operations in Asia, Tosoh continues to strengthen intra-group synergy, increase presence in growing markets, and execute a strategy to enable stable profitability.
* MDI and TDI are di-isocyanates that serve as the raw materials in the production of polyurethane.
Nippon Polyurethane Industry Co., Ltd.
Nippon Polyurethane Industry was established in 1960 to sustain the manufacture and sales of polyurethane materials and derivatives. In 1962, the company established a factory adjacent to Tosoh's Nanyo Complex, a source of necessary raw materials such as chlorine, and became Japan's first mass producer of the polyurethane raw material, TDI. There are 565 employees and sales for the period ending March 31st 2005 reached approximately JPY 70 billion (USD 596 million).
For more information:
URL: http://www.npu.co.jp/
Hodogaya Chemical Co., Ltd.
Hodogaya Chemical established in 1916 is a producer of fine chemicals, specialty polymers, and basic chemicals. The Company is focusing on strengthening and expanding core areas of polyurethane and imaging material businesses. Headquartered in Japan, Hodogaya has 1,341 employees and achieved sales of approximately JPY 106 billion (USD 902) for the period ending March 31, 2005.
For more information:
URL: http://www.hodogaya.co.jp/
Tosoh Corporation
Headquartered in Tokyo, Japan, Tosoh Corporation is a diversified global chemical and specialty materials company. Founded in 1935, the Company has expanded its reach into high value-added businesses such as fine chemicals, scientific instrumentation, thin film materials, and quartzware. Tosoh is a multi-billion dollar corporation that employs more than 9,000 people worldwide. The Company is listed on the Tokyo Stock Exchanges.
Stock Exchange Ticker Symbol: 4042
For more information, please contact:
Michael Hoover
International Public Relations
Tosoh Corporation
m_hoover@tosoh.co.jp
Tel: +81-3-5427-5118
Fax: +81-3-5427-5198
www.tosoh.com
Disclaimer
This document contains forward-looking statements, including without limitation, statements concerning product development, objectives, goals, and commercial introduction, which involve certain risks and uncertainties. The forward-looking statements are also identified through use of the words "anticipates," "plans," "expects," and other words of similar meaning. Actual results may differ significantly from the expectations contained in the forward-looking statements.