August 10, 2006
Kawasaki Sanko Kasei Co., Ltd.
Kuraray Co., Ltd.
Kawasaki Sanko Kasei Co., Ltd. (Headquarters: Yokohama, Kanagawa Prefecture; "KSK") and Kuraray Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; "Kuraray") decided to jointly establish a resin compound factory (10,000 tons of annual production when operations commence) in Zhongshan, Guangdong Province, China. KSK and Kuraray already have a new joint venture, established in the development zone of Zhongshan in April 26, 2006. The factory construction starts in August 2006, and operation is planned to commence in spring, 2007.
In Guangdong Province, China, the automobile and peripherals makers, as well as the electric and electronics components makers, are aggressively participating in the market. KSK will respond to the growing demand for compound products. Along with this, operating as its overseas production base, it will provide Kuraray's heat-resistant polyamide resin compound, PA9T GENESTAR, not only to users in China, but to users throughout Southeast Asia as well.
KSK already has factories in Shenzhen, Beijing and Shanghai, boasting 80,000 tons of annual production capacity. With the establishment of the Zhongshan factory, KSK's annual production capacity will increase to 90,000 tons in China, in response to increased demand for resin compounds in southern, northern and eastern China. Particularly in southern China, the establishment of the Zhongshan factory will enable speedier services for automobile and electric device-related users in the area encompassing Guangzhou.
Since the objectives of both Kuraray and KSK to establish an overseas production base would be aptly met, the two companies decided to jointly establish a factory in Zhongshan in order to respond to the increasing demand for heat-resistant polyamide resin, PA9T GENESTAR, in China and Southeast Asia.
|1. Company Name||JAPAN SUPER ENGINEERING PLASTICS (ZHONGSHAN) CO., LTD.|
|2. Representative||Masao Asai|
|3. Business Activities||Compounding for engineering and general-purpose plastics and other related businesses|
|4. Establishment||April 26, 2006|
|5. Production Capacity||10,000 tons/year (when inaugurated)
20,000 tons/year after three years
30,000 tons/year after five years
|6. Number of Employees||50|
|7. Facilities||Cutting-edge, high-performance biaxial extruder (Aperture: 70mm and 58mm)|
|8. Location||Huoju Dadao, Concentrated-constructed Quarter, Zhongshan Hi-Tech Industrial Development Zone, Zhongshan, Guandong Province, China|
|9. Investment||US$8.0 million|
|10. Capital||US$4.0 million (KSK Group 70%, Kuraray Group 30%)|
|Location||3-18-3 Shin-Yokohama , Kohoku-ku, Yokohama, Kanagawa Prefecture|
|Capital||¥127.8 million (as of March 31, 2006)|
|Business activities||Color compounding of plastics, compounding of polymer alloys and super engineering plastics, and development and sales of laborsaving and automated equipment|
|Location||1-1-3 Otemachi , Chiyoda-ku, Tokyo|
|Capital||¥89 billion (as of March 31, 2006)|
|Business activities||Production and sales of synthetic resins, chemicals, synthetic fibers and textiles etc.|