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SDK to Increase Supply of Liquefied Ammonia to Tohoku Region
—Distribution Base at Soma Port to Reopen—

Showa Denko K.K.
Feb 14, 2013

Showa Denko K.K. (SDK) has decided to reconstruct its liquefied ammonia distribution base in Soma District, Fukushima Prefecture, which was damaged by the tsunami that followed the Great East Japan Earthquake.  Reconstruction work will begin in June this year, and the new facility will open in March next year.

Liquefied ammonia is used in the production of synthetic fibers and metal surface treatment for automotive and construction machinery parts.  It is also used for removing nitrogen oxides contained in exhaust gas from thermal electric power plants and waste incineration facilities.  Thus, liquefied ammonia is an essential part of the lifeline.

Furthermore, SDK’s liquefied ammonia (trade name: EcoannTM) is approved as “eco-friendly goods for procurement” by major electric power companies because the product is partly based on used plastics.  SDK forecasts high demand for EcoannTM as thermal electric power plants are expected to continue operating at high rates.

In March 2010, SDK’s subsidiary Marusho Kogyo Co., Ltd. (Marusho Kogyo) started operating a liquefied ammonia distribution base at Soma Port to serve the markets in the six prefectures of the Tohoku region and Niigata Prefecture.  After the Great East Japan Earthquake in March 2011, however, SDK has been supplying customers with liquefied ammonia directly from its Kawasaki Plant.  After a lapse of about two years, SDK has decided to reconstruct the distribution base to ensure stable supply of liquefied ammonia to customers who have resumed operations and to thermal electric power plants that are operated at high rates.

SDK has also decided to operate the new distribution base as its own facility in an effort to further expand sales of EcoannTM as one of the main products in its basic chemicals business.  Against this background, SDK will absorb Marusho Kogyo effective April 25.*

SDK is conducting its operations based on its Vision that calls for contribution to society through provision of useful products and services.  By providing EcoannTM and other eco-friendly and indispensable products, SDK will continue meeting the expectations of society and local communities.

*Please refer to a separate news release of today entitled “SDK to Merge with Marusho Kogyo.”


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