Ube Industries (President: Kazumasa Tsunemi) and Mitsubishi Corporation (President: Mikio Sasaki) have agreed that on March 31, 2003, Ube Industries will transfer a 51% interest of Ube Agri-Materials, Ltd. to Mitsubishi Corporation. Ube Agri-Materials, Ltd. (President: Toshiyuki Ono) is wholly owned by Ube Industries and is engaged in the manufacture and sale of fertilizers. The stock transfer is part of the business restructuring called for in the medium-term management plan of Ube Industries, the revised "New 21 Ube Management Plan."
Ube Agri-Materials, founded in 1955, is a wholly-owned agricultural subsidiary of Ube Industries. It is a large fertilizer manufacturer engaged in the manufacture and sale of compound fertilizers (production capacity: 200,000 tons/year) and the sale of the ammonium sulfate produced by Ube Industries as a by-product of caprolactam (nylon resin material).
Mitsubishi Corporation has one of the largest fertilizer sales networks in Japan, and has already invested in four fertilizer manufacturers and is increasing its business in the fertilizer/agricultural sector. Mitsubishi Corporation has for many years had a broad-reaching business relationship with Ube Industries, purchasing chemical products as well as fertilizers for sale in Japan and other countries.
The new alliance will allow Ube Agri-Materials to reconstruct its production, sales and distribution systems for improved efficiency in the harsh business environment of the fertilizer sector. Further, by strengthening its procurement network of raw materials, it aims to achieve even greater profitability and to extend its business as a central player in the industry through the aggressive development of its business.
|Company Name||Ube Agri-Materials, Ltd.|
|Established||October 12, 1955|
|Address||1988-7 Kogushi, Ube, Yamaguchi, Japan|
|Capital||490 million yen|
|Sales||Approximately 10,000 million yen per year|
|Business||Production and sales of compound fertilizers, sales of ammonium sulfate|