Tokyo, Japan—Tosoh Corporation and Nippon Steel Chemical Co., Ltd. (Nippon Steel Chemical), announced today that they will dissolve their joint venture in Nippon Styrene Monomer Co., Ltd. (NSM), at the end of March 2008. Tosoh added that it will sell its 35% equity in the venture to Nippon Steel Chemical, thereby making NSM a wholly owned subsidiary of Nippon Steel Chemical. The announcement stems from Tosoh’s decision to withdraw from the styrene monomer business. 

Since Tosoh closed its styrene monomer plant at its Yokkaichi Complex in 1998, NSM has served as the company’s sole manufacturer of styrene monomer. Tosoh’s decision to leave the business entirely is in keeping with its groupwide strategy of “select and focus.” The company remains dedicated to strengthening and expanding its core commodity and specialty operations at its Nanyo and Yokkaichi complexes.
 

Nippon Steel Chemical, in making NSM a wholly owned subsidiary, will increase its annual styrene monomer capacity to 422,000 MT and will become the fourth-largest manufacturer of styrene monomer in Japan. It is expected that the Oita Petrochemical Complex, where NSM is located, will continue to strengthen its styrene monomer production capabilities through the activities of Showa Denko K.K. and Nippon Steel Chemical’s parent company, Nippon Steel Corporation. Showa Denko provides the petrochemical raw materials for the facility’s manufacture of styrene monomer, while the Nippon Steel Group provides the required coal. Together, they assure the Oita Petrochemical Complex of stable feedstock supplies.

Nippon Styrene Monomer Co., Ltd., manages the sales and manufacturing operations for a styrene monomer plant with an annual production capacity of 232,000 MT. NSM was incorporated as a joint venture in 1988 between Tosoh Corporation and Nippon Steel Chemical Co., Ltd., and began operations in 1990. Their joint initial capital investment in NSM was ¥400 million, of which Nippon Steel Chemical held a 65% stake and Tosoh held the remaining 35%.    

Tosoh Corporation

WHO WE ARE

Tosoh Corporation is a Japanese chemical company established in 1935 and listed on the First Section of the Tokyo Stock Exchange. It is the parent of the Tosoh Group, which comprises 141 companies worldwide and a multiethnic workforce of over 10,000 people and generates sales of ¥781 billion (US$6.8 billion) annually.

WHAT WE DO

Tosoh is one of the largest chlor-alkali manufacturers in Asia. The company supplies the plastic resins and an array of the basic chemicals that support modern life. Tosoh’s petrochemical operations supply ethylene, polymers, and polyethylene, while its electronic materials business serves the global semiconductor and flat-panel display industries. Tosoh has also pioneered sophisticated bioscience systems that are used for the rapid diagnosis of life-threatening diseases, such as diabetes and certain cancers, and to prevent epidemics by identifying pathogenic microbes. In addition, Tosoh develops products and provides services to purify water and to monitor the environment as part of a commitment to a sustainable future.

Stock Exchange Ticker Symbol: 4042

For more information, please contact

Michael Hoover

International Corporate Development

Tosoh Corporation

m_hoover@tosoh.co.jp

Tel: +81-3-5427-5118

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 word "anticipates," and other words of similar meaning. Actual results may differ significantly from the expectations contained in the forward-looking statements.