March 11, 2009 |
Chisso Corp.
Asahi Kasei Chemicals Corp.
Mitsubishi Chemical Corp.
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Basic agreement for consolidation of fertilizer affiliates
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Chisso (Head office, Tokyo; President, Shun'ichi Okada), Asahi Kasei Chemicals (Head office, Tokyo; President, Taketsugu Fujiwara), and Mitsubishi Chemical (Head office, Tokyo; President, Yoshimitsu Kobayashi) have reached basic agreement and initiated detailed studies for the consolidation of the fertilizer businesses operated by their affiliates Chisso-Asahi Fertilizer Co., Ltd. (Head office, Tokyo; President, Takeshi Sato) and Mitsubishi Chemical Agri, Inc. (Head office, Tokyo; President, Seiichiro Yoshimoto).
The three parties will advance negotiations on the method of consolidation, capitalization ratios, and other specifics, with October 2009 as a target date for implementation. Details will be disclosed promptly as they are determined.
The Japanese operating environment for fertilizers has become extremely challenging, with declining fertilizer demand resulting from decreases in both the area under cultivation and the amount of fertilizer applied per unit of area. In addition, increased costs for fertilizer precursor materials have made a fundamental rationalization and streamlining of the domestic fertilizer industry unavoidable.
Under these circumstances, the parties will perform detailed studies for the consolidation of their fertilizer businesses with the objective of strengthening the operating base for more stable supply with swift product development which corresponds to customer requirements.
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| Corporate profile of fertilizer affiliates* |
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| Name: |
Chisso-Asahi Fertilizer |
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Mitsubishi Chemical Agri |
| President: |
Takeshi Sato |
|
Seiichiro Yoshimoto |
| Head office: |
Tokyo |
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Tokyo |
| Establishment: |
July 1, 1969 |
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April 1, 2002 |
| Business line: |
Production and sale of fertilizer |
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Production and sale of fertilizer |
| Sales: |
¥20.0 billion |
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¥23.6 billion |
| Employees: |
241 |
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84 |
| Plants: |
Fuji, Minamata, Tobata |
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Kurosaki, Onahama, Mizushima |
| Laboratory: |
Fuji |
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Kurosaki |
| Sales branches: |
Tokyo, Sapporo, Sendai, Fuji, Nagoya, Osaka, Fukuoka, Kumamoto |
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Tokyo, Fukushima, Osaka, Nagoya, Fukuoka |
| Paid-in capital: |
¥305 million |
|
¥1,500 million |
| Shareholders: |
Chisso Group - 65%
Asahi Kasei Chemicals - 35% |
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Mitsubishi Chemical - 95.3%
Nippon Kasei Chemical Co., Ltd. - 4.7% |
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| * As of March 31, 2008. |
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