Ube Industries Implements Organizational Changes

Ube Industries, Ltd. (President: Kazumasa Tsunemi) will implement organizational changes on October 1, 2002 as a part of its shift to an operating holding company, with details as follows.

1. Objective

In order to improve management efficiency and clearly define positions, responsibilities, and authorities within the organization.

2. Outline of Changes

1. Restructuring of Chemicals & Plastics Segment
   The company will reorganize its four existing divisions (Polyolefins & Synthetic Rubber; Caprolactam, Nylon & Industrial Chemicals; Fine Chemicals & Pharmaceuticals Products; Specialty Products) of Chemicals & Plastics Segment and Energy & Environment Segment into five divisions linked directly to top management.
   The new Energy & Environment Division will be responsible for group-wide infrastructure.
   (This change will see the elimination of the administrational sections of the Chemicals & Plastics Segment and the Energy & Environment Segment. These sections will be integrated into Headquarters.)
2. Conversion of Construction Materials Segment and Machinery & Metal Products Segment into in-house companies. This will result in a greater degree of operational independence.
3. Centralization of headquarter functions at the Corporate Planning & Administration Office and the General Affairs & Personnel Office to downsize the headquarter staff, to clarify Group Head Office functions and to improve flexibility.(Service functions were centralized at the Ube Group Shared Service Center in October 2001.)
4. Integration of the Purchasing Department and Procurement & Logistics Department of Chemicals & Plastics Segment into the newly established Procurement & Logistics Division, which is positioned as a profit center.
5. Consolidation of branch offices. (Closure of Sapporo and Tohoku offices and Hiroshima and Kyushu branches by consolidation into the Osaka and Nagoya Branches.)