In-house Power Plant Expansion to 1,000,000Kw
JPY 27 Billion Investment to Strengthen Vinyl Isocyanate Operations

Tokyo, Japan – Tosoh Corporation announced that with completion of a three-year environmental impact assessment, construction of coal thermal power station facilities for an additional 220,000 Kw will begin in August 2006.  Construction will take place at Tosoh Corporation’s Nanyo Complex in Japan and additional power is scheduled to come on line in April of 2008.  The total investment is expected to be JPY 27 billion.

The additional capacity will supply plants that are presently under construction as well as support the increased demand for power that will accompany future business expansion.  It was also decided that with commencement of the new power station, older facilities accounting for 66,000Kw of capacity will be scrapped.  Including the 206,000 Kw of power capacity at Tosoh’s Yokkaichi Complex, the Company’s total capacity will top 1,000,000 Kw of power generation. 

The additional power will play a significant role in supporting Tosoh’s strategy of increasing the competitiveness of their fully integrated vinyl isocyanate operations.  As an integral part of those initiatives, Tosoh increased their stake to 51.7% in affiliate Nippon Polyurethane Industry Co., Ltd. (NPU), a leading supplier of feedstock to the polyurethane industry in Japan and Asia.  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. Related to this construction, Tosoh is implementing additional expansion of its facilities for production of important MDI precursors such as aniline and carbon monoxide.  Utilities such as power will also be supplied to make Tosoh Group Companies such as NPU more competitive.

Dedicated to the principles of sustainable development, Tosoh will install the latest flue gas desulfurization systems and utilize the coal ash from the power generation facilities in the production of cement.  As always, Tosoh Group strives to lessen the impact on the environment while recycling resources.

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 and is listed on the Tokyo Stock Exchange.
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
URL: http://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.