March 11, 2009
Chisso Corp.
Asahi Kasei Chemicals Corp.
Mitsubishi Chemical Corp.

Basic agreement for consolidation of fertilizer affiliates
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.
Corporate profile of fertilizer affiliates*
Name: Chisso-Asahi Fertilizer   Mitsubishi Chemical Agri
President: Takeshi Sato   Seiichiro Yoshimoto
Head office: Tokyo   Tokyo
Establishment: July 1, 1969   April 1, 2002
Business line: Production and sale of fertilizer   Production and sale of fertilizer
Sales: ¥20.0 billion   ¥23.6 billion
Employees: 241   84
Plants: Fuji, Minamata, Tobata   Kurosaki, Onahama, Mizushima
Laboratory: Fuji   Kurosaki
Sales branches: Tokyo, Sapporo, Sendai, Fuji, Nagoya, Osaka, Fukuoka, Kumamoto   Tokyo, Fukushima, Osaka, Nagoya, Fukuoka
Paid-in capital: ¥305 million   ¥1,500 million
Shareholders: Chisso Group - 65%
Asahi Kasei Chemicals - 35%
  Mitsubishi Chemical - 95.3%
Nippon Kasei Chemical Co., Ltd. - 4.7%
* As of March 31, 2008.


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