TOKYO, December 25, 2009_ Ube Industries, Ltd. today announced a plan to merge its caprolactam and nylon subsidiaries in Thailand, Thai Caprolactam Public Co., Ltd. and Ube Nylon (Thailand) Ltd., effective on February 1, 2010. The merged company will be named Ube Chemicals (Asia) Public Co., Ltd. The current subsidiaries will be liquidated through an amalgamation under Public Limited Company Act and Civil and Commercial Code in Thailand, with their assets and liabilites being transferred to Ube Chemicals (Asia).
Thai Caprolactam manufactures and sells caprolactam ,the main raw material for nylon 6, with an annual production capacity of 110,000 tonnes. On the other hand, Ube Nylon (Thailand) manufactures and sells nylon 6 resins with an annual production capacity of 25,000 tonnes.
Both the caprolactam business and nylon business are core business segments for Ube Industries. In Thailand, an important base of operations for Ube Industries in Asia, the Company has made a sustained effort to strengthen its caprolactam and nylon business. Ube Nylon (Thailand) is currently constructing a nylon plant with an annual production capacity of 50,000 tonnes, which is scheduled to be completed in March 2010. And Thai Caprolactam is also currently examining a plan to strengthen its production by adding a further 20,000 tonnes of annual production capacity.
In addition to enhancing competitiveness through these measures, the vertical integration of the two subsidiaries will effectively strengthen sales force and enable streamlining of indirect functions, to maximize the use of management resources. The move will enable Ube Industries to strengthen and enhance the stability of the business platform in Thailand.
| Company name | Ube Chemicals ( Asia ) Public Co., Ltd. |
|---|---|
| Business Description | Manufacturing and sales of nylon resin, nylon compounds, caprolactam, ammonium sulfate and other products |
| To Be Established | February 1, 2010 |
| Head Office Address | 87/2 CRC Tower, All Seasons Place, 9th Floor, Wireless Road, Lumpini, Pathumwan, Bangkok 10330 |
| President | Dr. Charunya Phichitkul |
| Capitalization | 8.804 billion bahts |
| Shareholders | Ube Industries, Ltd. (93%), Marubeni Group (6%), other (1%) |
| Employees | 493 |
| Company | Thai Caprolactam Public Co., Ltd. | Ube Nylon ( Thailand ) Ltd. |
|---|---|---|
| Business Description | Manufacturing and sales of caprolactam and ammonium sulfate | Manufacturing and sales of nylon resin and nylon compounds |
| Established | December 1990 | June 1995 |
| Head Office Address | 87/2 CRC Tower , All Seasons Place, 9th Floor, Wireless Road , Lumpini, Pathumwan, Bangkok 10330 | 87/2 CRC Tower , All Seasons Place, 9th Floor, Wireless Road , Lumpini, Pathumwan, Bangkok 10330 |
| President | Dr. Charunya Phichitkul | Dr. Charunya Phichitkul |
| Capitalization | 8.576 billion bahts | 228 million bahts |
| Shareholders | Ube Industries, Ltd. (91%), Marubeni Group (7%), other (2%) | Ube Industries, Ltd. (100%) |
| Employees | 411 | 82 |
| Net Sales | 12.973 million bahts (fiscal year ended December 31, 2008) | 2.566 million bahts (fiscal year ended December 31, 2008) |
