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SDK To Start ED-Process Tube Production in China

February 6, 2003

Showa Denko K.K. (SDK) will start producing aluminum tubes for OA equipment in Dalian, Liaoning Province, China, in January 2004, using its proprietary extrusion and drawing process.

The tubes are currently being produced in Oyama and Hikone, Japan and at SDK’s subsidiary in the U.S., and sold under the brand name of “ED-process tubes.”

SDK has decided to produce ED-process tubes in China because it expects further expansion in the production of color printers and increased shipments of ED-process tubes to China.

SDK will establish a new company, Showa Denko (Dalian) Co., Ltd., by the end of this month in the economic and technical development zone of Dalian. Plant construction will also start this month. Capital investment will amount to approximately ¥2 billion.

The new company, to be capitalized at ¥1 billion and fully owned by SDK, will produce 2.5 million ED-process tubes a month. It will employ about 200 workers, and SDK will send three people, including General Manager of the company.

Under the new consolidated business plan for the 2003-2005 period, called the “Sprout Project,” SDK is expanding its specialty aluminum products operations, centering on display materials, components for building lighter cars, printer parts and other individualized product lines.