Asahi Kasei Corporation (“Asahi Kasei”; Head Office, Chiyoda-ku, Tokyo; President, Kazumoto Yamamoto) has today reached a basic accord with Nichimen Corporation (“Nichimen”; Head Office, Minato-ku, Tokyo; President, Toru Hambayashi), for the transfer at the end of January 2002 of a majority (51%) interest in Wuxian Hamasaki Plastics Compounds Co., Ltd., currently a wholly-owned Nichimen subsidiary in China engaged in the production of plastic compounds.
Asahi Kasei will also establish a new company, at the Waigaoqiao free trade zone in Shanghai, for the marketing and sales of engineering plastic, compounds and for the advancement of a close relationship with customers in China.
Note: Plastic compounds are produced by the addition of fire retardants, glass fibers, or other materials to nylon or other polymers. They are characterized by high performance, functionality, and added value.
Context and purpose of acquisition
Acquisition of controlling interest in the plastic compounds company, together with establishment of the new company for marketing and sales, is part of a strategic globe-spanning program for engineering plastics and compounds in the context of Asahi Kasei’s ISHIN2000 corporate strategic midterm initiative for success and growth in an internationally competitive, global market environment.
Under the three-year ISHIN2000 initiative begun in April 1999, engineering plastics and compounds hold a key position in the corporate chemicals sector as high-performance, competitive-superiority products and operations, with an extensive program for their growth and expansion led by the development of a highly customer-focused operational configuration, and by the construction of a new modified-PPE plant in Singapore and other operational advances in Japan and the four key global market regions.
The program is progressing in accord with the rising demand from automotive, industrial and home electronics, and other manufacturers with growing global operations based in Europe, America, ASEAN, and China, for engineering plastics and compounds production and technical support and development directly serving their operations in these four key regions. The program has previously led to the establishment and growth of plastic compounds production bases in Europe and America, with the launching of Asahi Thermofil in July 2000, and in the ASEAN region, with the founding of Asahikasei Plastics Thailand in April 1999.
With the acquisition of controlling interest in the plastic compounds production company in China, and the established operations of Asahi Kasei Plastics (Thailand) Ltd. for engineering plastics and compounds production in Thailand, Asahi Kasei will serve the growing Asian demand directly from production bases in both of the key Asian regions.
The production bases in China, ASEAN, Europe, and America, as well as Japan, will form a growing global configuration of competitive-superiority products and processes, and provide engineering plastics and compounds, technical support including technologies development and provision, and close, effective response, for customers in the rapidly globalizing automotive, electronics, and other manufacturing industries.
Current profile of Wuxian Hamasaki Plastics Compounds Co., Ltd.
Head office: Suzhou City, Jiangsu Province, People’s Republic of China
Establishment: February 1996
Capitalization: US$6,000,000 (720,000,000 yen at 120 yen/dollar);
wholly owned by Nichimen Corporation
Production capacity: 18,000 tons/year, as compounded plastic resins
Employees: 105
| Scheduled acquisition and renaming of company |
| Acquisition |
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Acquisition of 51% interest by Asahi Kasei Corporation, at end of January 2002 |
| New company name (tentative) |
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Asahikasei (Suzhou) Plastics Compound Co., Ltd. |
Profile of new company for marketing and sales
Company name (tentative): Asahikasei Plastics (Shanghai) Co., Ltd.
Capitalization: 300,000,000 yen; wholly owned by Asahi Kasei Corporation
Businesses: Marketing and sale of engineering plastic and plastic compound products in Shanghai region
Establishment: February 2002
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