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SDK's Subsidiary Acquires Ube's Agrochemicals Business

Showa Denko K.K.
Ube Industries, Ltd.
January 8, 2003

SDS Biotech K.K. (SDS), a wholly owned subsidiary of Showa Denko K.K. (SDK), today acquired the agrochemicals business of Ube Industries, Ltd. (Ube).

The transaction covers the following three lines of fungicides developed and marketed by Ube:

  • 1. Pefurazoate (trade name: Healthied): Registered in 1989, used for disinfection of rice/wheat seeds
  • 2.Oxpoconazole fumarate (trade name: Alshine): Registered in 2000, used for fruit trees, including cherry, pear, peach, grapevine, apple and orange
  • 3.Diflumetorim (trade name: Pyricut): Registered in 1997, used for flowers and ornamental plants, including chrysanthemum and rose

SDS has obtained all of Ube's rights pertaining to the registration, safety data, production & sale, patents and trademarks for the three lines of fungicides.

SDK is stepping up its efforts to establish SDS as a leading agrochemicals manufacturer while Ube is going to concentrate its resources on the pharmaceutical products and specialty products businesses.

In addition to its main product of Daconil? fungicide (effective for a wide range of crops) and rice herbicides with a significant market share, SDS will expand its businesses in Japan and in the fast growing Asian markets, centering on vegetable, fruit tree and rice applications.

Among the three fungicide lines SDS has acquired from Ube, "Healthied" enjoys a high market share in Japan as a rice seed disinfectant. Together with Daconil? used for seedling raising in box, it will facilitate the spread of the disease control system covering the stages from seed to raising of seedling. "Healthied" is also expected to create marketing synergies with existing rice herbicides of SDS such as Dymron, cafenstrole and benzobicyclon.

Showa Denko Group is planning to increase its agrochemicals sales from ¥18 billion in 2002 to ¥23 billion in three years' time.