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Showa Denko Locates Second Bulk Molding Compound Plant in China

A New Joint Venture to Be Incorporated in South China

Tokyo, Feb 12, 2015 - (JCN Newswire) - Showa Denko (SDK) (Tokyo:4004) decided to establish a new production site for thermosetting bulk molding compound (BMC) in Zhuhai, Guangdong Province, China, jointly with Eternal Materials Co., Ltd., a synthetic resin manufacturer based in Taiwan. SDK Group aims to strengthen its BMC business through this establishment of its second BMC production site in China.

BMC is a thermosetting bulk molding compound made from unsaturated polyester resin as main component, kneaded together with glass fiber and other additives. BMC is used as headlamp reflectors and engine covers for car applications, and encapsulation material for home electrical appliances and precision parts. BMC is also expected to be used much more as encapsulation material for motors installed in electric vehicles and hybrid vehicles. On molding BMC parts, BMC is required to have thermal resistance, water-resistance, electric properties, and dimensional accuracy. SDK Group has high competitiveness not only in its ability to produce and market BMC, but also in its capability to design customized BMC molded parts to satisfy customer's requirements.

SDK Group's BMC business sector has production sites at three locations in Japan, Shanghai, and Thailand. Since 2007, SDK Group's sales of BMC in China has been recording annual growth rate of 15% in average, and our BMC plant in Shanghai has been operating at full capacity for quite a while. By establishing another BMC plant in China, where further market growth is expected, SDK Group will strengthen its BMC supply system in that region.

Under its medium-term consolidated business plan "PEGASUS Phase II," SDK Group classifies its business in functional chemicals, including BMC, into the category of "Growth" business. Thus, during the period of PEGASUS Phase II which lasts for the whole year of 2015, SDK will aggressively expand its functional polymer business on the world market, centering on Asia.

Reference

Outline of the new joint venture to produce BMC:
- Company name (tentative): Showa Eternal (Zhuhai) Co., Ltd.
- Location: Zhuhai, Guangdong Province, China
- Predetermined date of incorporation: June 2015
- Predetermined date of start-up of operation: December 2016
- Scope of business: Production of BMC
- Capital: RMB 70,000,000 (JPY 1,190,000,000: RMB 1 = JPY 17)
- Shareholders: SDK (70%), Eternal Materials Co., Ltd. (30%)
- Predetermined number of employees: about 50 employees

Outline of Eternal Materials Co., Ltd.:
- Location: Gaoxiong, Taiwan
- Scope of business: Production and sales of synthetic resin materials, special chemicals, and electronic chemicals
- Annual sales: US$ 1,240,000,000 (in 2012)

About Showa Denko

Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods), electronic equipment (hard disks for computers) and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp .



Source: Showa Denko

Contact:
Showa Denko K.K. (SDK)
Public Relations Office
Phone: 81-3-5470-3235


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