Ube Industries, Ltd. (President: Kazumasa Tsunemi) today announced that it has converted Thailand-based subsidiary Ube Nylon (Thailand) Ltd. (UNT; President: Hajime Morimoto; Rayong Province) into a wholly owned subsidiary through an acquisition of shares.
Established in June 1995 with capital of 250 million bahts, UNT commenced production of Nylon 6 resins in October 1997. At the time of establishment, UBE Group held a 51% interest in UNT, followed by Thailand-incorporated TPI Group's stake of 40% and Nissho Iwai Group's 9%. Ube Industries and Nissho Iwai subsequently acquired TPI's interest in UNT in September 1999. Ube Industries has now converted UNT into a wholly owned subsidiary after acquiring all the shares held by Nissho Iwai.
Ube Industries has been moving quickly to establish a global nylon supply network. The company already produces Nylon 6 at Thailand-based UNT, which has a production capacity of 21,000 tons per year. The company also completed a Nylon 6 compound plant with capacity of 6,000 tons per year in March 2002 to meet fast-growing demand in Southeast Asia for nylon-based engineering plastics used in automobile components.
Ube Industries is also committed to commercializing Nylon 6 in Europe. Spain-based subsidiary Productos Quimicos del Mediterraneo, S.A. (PQM), which specializes in the production of caprolactam, plans to start operating a new manufacturing facility of Nylon 6 resin with a capacity of 10,000 tons per year in spring 2004. PQM plans to increase capacity by an additional 10,000 tons per year two years after the completion of the first plant. Ube Industries is also pressing ahead with the Nylon 12 business in Europe, with local production scheduled to begin in 2006.
The nylon business is being significantly reshaped by globalization and fiercer competition, driven by the shift of production overseas by domestic end users and other factors.
Ube Industries has moved to convert UNT into a wholly owned subsidiary to respond promptly to rapid changes in the nylon business, given its standing as comprehensive nylon manufacturer with a full range of Nylon 6, Nylon 66 and Nylon 12 products. Equally critical is cementing its position as a global supplier with superior quality and cost competitiveness.