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Showa Denko and KH Neochem Agree to Dissolve Ethyl Acetate JVUnion Showa K.K.

Showa Denko K.K.
KH NEOCHEM CO., LTD.
November 6, 2013

Showa Denko (SDK) (TOKYO:4004) and KH Neochem Co., Ltd. (KHNC) have agreed to dissolve their joint venture, Japan Ethyl Acetate Co., Ltd. (JEA).  

JEA was established in August 2003 for the purpose of strengthening the foundations of the two parent companies’ ethyl acetate businesses.  JEA began commercial production in April 2004.

While demand for ethyl acetate has grown inside and outside Japan since then, the business environment has changed dramatically, reflecting the rise in raw material costs and capacity expansions in neighboring countries.  

Under the circumstances, SDK and KHNC have concluded, after mutual consultation, that it is difficult to continue JEA’s operations.  Thus, the two companies have agreed to stop ethyl acetate production at JEA, and dissolve the company.

[Outline of the joint venture to be dissolved] 

Name
Japan Ethyl Acetate Co., Ltd.
Head office     2, Nakanosu, Oita City, Oita Prefecture
(within the premises of SDK’s Oita Complex)
Establishment   
August 20, 2003
Start of commercial production   
April 1, 2004
Capital stock   
\100 million
Ownership   
SDK 55%; KHNC 45%
Representative     President: Takashi Miyazaki
(Managing Corporate Officer;
General Manager, Petrochemicals Division, SDK)
Composition of the board   
Three directors from SDK; and two directors from KHNC
Scope of business   
Production of ethyl acetate
Production capacity  
100,000t/y

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


For further information, contact:
Showa Denko K.K.:    Public Relations Office (Phone: 81-3-5470-3235)
KH Neochem Co., Ltd.:    General Affairs Division (Phone: 81-3-3510-3550)