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.
| 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 |
