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TOKYO, July 18, 2006_ Ube Industries, Ltd. announced
today that it has decided to pursue manufacturing and
sales of butadiene rubber (BR) in China through a partnership
with two other companies. The partners in the venture
are TSRC Corporation of Taiwan (President: Wei-Hau Tu)
and Marubeni Corporation of Japan (President: Nobuo Katsumata).
The new venture is to be established in September 2006
and will do business as TSRC Ube (Nantong) Chemical Industry
Co., Ltd. The venture will set up business in the Nantong
Economic & Technological Development Area (NETDA)
in Nantong City, Jiangsu, China. Construction will begin
on a new plant for completion in 2009, commencing operations
that same year.
Ube Industries has been considering new investments to
meet the rising demand for butadiene rubber in China,
which is being driven by surging demand for automobiles
and ever-increasing local production of tires to support
the demand for automobiles. The company decided to form
a joint venture partnership with existing licensee TSRC
Corporation, with which it already operates a joint venture
operation for butadiene rubber in Thailand.
TSRC Corporation operates an existing venture for styrene
butadiene rubber (SBR) in China, making it an ideal partner
for Ube Industries' expansion into the Chinese market.
Ube Industries, TSRC Corporation and Marubeni Corporation
will each take delivery of a certain percentage of the
joint venturefs output based on their respective investment
ratios, with the aim of securing availability for butadiene
rubber.
With the move into China, Ube Industries secures a third
base to supply butadiene rubber in the Asia market, as
it strives to further strengthen its presence in Asia.
| Profile of New Company |
| Company name: |
TSRC Ube (Nantong) Chemical Industry Co., Ltd. |
| Location: |
Nantong Economic & Technological Development
Area, Nantong City, Jiangsu, China |
| Type of business: |
Manufacturing and sales of butadiene rubber under
technology license from
Ube Industries |
Forecasted annual
production capacity: |
50,000 tons (starting operations in 2009 and increasing
to 72,000 tons in 2011) |
| Projected establishment: |
September 2006 |
| Projected total investment: |
US$82 million |
| Capitalization: |
US$40 million |
| Investment ratio: |
TSRC 55%, Ube Industries 25%, Marubeni 20% |
| Projected number of employees: |
Approx. 150 |
For inquiries please contact:
Ube Industries, Ltd.
Investor Relations & Public Relations Dept.
Corporate Planning & Administration Office
Seavance North Building, 1-2-1 Shibaura, Minato-ku, Tokyo 105-8449
Phone : +81(3)5419-6110
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