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Showa Denko to Dissolve PT Showa Esterindo Indonesia

Showa Denko K.K.
Sep 30, 2014

Showa Denko (SDK) (TOKYO: 4004) have decided to dissolve its consolidated subsidiary PT. Showa Esterindo Indonesia (SEI) and terminate its production of ethyl acetate in Indonesia.

SEI was established in 1997 for the purpose of producing and selling ethyl acetate in the Southeast Asian market, and started to produce ethyl acetate in 1999 as SDK’s first plant to introduce our proprietary technology to synthesize ethyl acetate by adding ethylene directly to acetic acid. Since then, the demand for ethyl acetate in Southeast Asia had been stable for a while. In recent years, however, the business environment for SEI has become harder than before because of rises in material prices and expansion of the capacities of neighboring countries to supply ethyl acetate. Under these circumstances, SDK and its partners have concluded, after deliberation, that it is difficult to continue SEI’s operations, and recently decided to dissolve the company.

[Outline of SEI]

Name PT. SHOWA ESTERINDO INDONESIA
Head office Graha Indochem, 7th floor Jl. Pantai Indah Kapuk Boulevard Kav. SSB/E Jakarta 14470, INDONESIA
Establishment August 1997
Capital stock US$24.4 million
Ownership SDK 66.98%
  PT.Adiguna Eka Sentra 20.22%
  Toyota Tsusho Corporation  9.43%
  CLP International Pte.Ltd 3.37%
Representative President: Satoshi Hara
Scope of business Production and sales of ethyl acetate
Production capacity 50,000t/y

[Financial impact of dissolution]
SDK had already incorporated the expected loss accompanying this dissolution into the projected business results for the year ending December 31, 2014 announced on July 31, 2014.

[Schedule]
Production in SEI will be stopped by the end of 2014. After demolition and removal of the production facility, SEI will be dissolved and liquidated without delay.

 

For further information, contact:
Public Relations Office (Phone: 81-3-5470-3235)