

The role of the Petrochemicals Sector is to support the growth of Showa Denko's
basic business through the manufacture and sales of organic chemical products
including cracker products such as ethylene and propylene and their derivative
products such as acetic acid and allyl alcohol.
Oita Plant, the main manufacturing base, has a naphtha cracker and is characterized
by a demand structure that balances the supply of basic materials to our company
for making acetyl derivatives and to various petrochemical complex companies for
making synthetic resin, synthetic rubber, and styrene monomers. The Petrochemical
complex, which aimes to secure the greatest competitive strength in Asia, is the
key to the reinforcement of our competitiveness, such as through the strategic
reorganization of our cracker facilities, and more advanced material diversification
than our competitors. We are able to meet the needs of our customers by utilizing
an infrastructure that includes our large Oita site, an abundant industrial water
supply, and excellent port facilities, as well as a location close to the fast-growing
East Asian and Chinese economies.
Armed with our leading catalyst technology, we have expanded our business in Showa
Denko's own acetyl and allyl alcohol derivative products, while our acetic acid
and ethyl acetate operations continue smoothly with the establishment of new production
methods using our unique technology. In particular, we have secured a top-level production capacity share in the Asian ethyl acetate market based on our two-site structure
in Oita and Indonesia. In future, we aim to further enhance the competitiveness
of our derivative product business, headed by acetyl chain compounds such as acetic
acid, ethyl acetate and vinyl acetate produced in an integrated system from ethylene,
so that we can deliver products and services that fulfill the expectations of
our customers.
