kuraray


News Releases 2005

MMA Monomer Manufacturing Tie Dissolved

July 15, 2005
Kuraray Co., Ltd.

Kuraray Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President: Yasuaki Wakui; below, "Kuraray") and Mitsui Chemicals, Inc. (Headquarters: Minato-ku, Tokyo; President: Kenji Fujiyoshi; below, "Mitsui Chemicals") agreed on July 15 to terminate their relationship with regard to Kyodo Monomer Co., Ltd. (below, "Kyodo Monomer"). Kyodo Monomer was established through a fifty-fifty joint venture of Kuraray and Mitsui Chemicals, to manufacture methyl methacrylate (MMA) monomer, a raw material for the production of methacrylic resin(*1). Kuraray will transfer to Mitsui Chemicals its entire stock holding in Kyodo Monomer, which will become a wholly owned subsidiary of Mitsui Chemicals.

*1
Highly transparent, light in weight, and strong, methacrylic resin is widely used in LCD light guides and other optical products, as well as in auto parts and a number of other applications.

Background

In 1988, Mitsui Toatsu Chemicals, Inc.(*2) and Kyodo Gas Chemical Co., Ltd.(*3) and established Kyodo Monomer as an equally funded joint venture. Kyodo Monomer commenced operations in 1991, and produced MMA monomer for the next 14 years.

*2 Mitsui Toatsu Chemicals, Inc.
In 1997 Mitsui Toatsu Chemicals, Inc. merged with Mitsui Petrochemical Industries, Ltd. to become Mitsui Chemicals, Inc.
*3 Kyodo Gas Chemical Co., Ltd.
Kyodo Gas Chemical Co., Ltd. merged with Kuraray Co., Ltd. in 1989.

Date of stock transfer to Mitsui Chemicals

September 30, 2005

Additional Information : Kyodo Monomer Co., Ltd. (Data as of July 15, 2005)

1. Business activities manufacturing and sale of methyl methacrylate monomer
2. Headquarters Minato-ku, Tokyo
3. Capitalization ¥400 million
4. Ownership Kuraray, 50%; Mitsui Chemicals, 50%
5. President Toshikazu Tanaka (also vice-president of Mitsui Chemicals)
6. Number of employees 20 (all seconded from Mitsui Chemicals)
7. Manufacturing facilities (1) Location of plant: Takaishi city, Osaka (on the site of Mitsui Chemicals' Osaka Works)
(2) Production capacity: 40,000 tons per year