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SDK Accomplishes Reform of Plastic Processing Businesses

July 4, 2005

Showa Denko K.K. (SDK) has accomplished structural reform of its plastic processing businesses, thereby completing the overall restructuring of its petrochemicals operations in accordance with the Sprout Project. Specifically, the following steps have been taken pertaining to the three subsidiaries engaged in the plastic processing businesses:

  • 1.Hymold Co., Ltd.
    Since its establishment in 1997 through the merger of three SDK subsidiaries, Hymold has conducted its plastic processing business, producing molded articles for use in automotive parts at its Kawagoe Plant and housings for electric appliances / OA equipment at its Gunma Plant.

    In May this year, Hymold sold the assets at the Kawagoe Plant, including the land, buildings and machinery, to TS Tech Co., Ltd., a major customer for the plant’s products.

    Then, on July 1, SDK sold its shares in Hymold to Toyo Hymold International Pte. Ltd. (THI)--a subsidiary in Singapore of Toyo Denka Kogyo Co., Ltd. THI is in the plastic housings business for electric appliances / OA equipment in Southeast Asian countries, China and Taiwan.

    THI will fully utilize the assets at the Gunma Plant, including the land, buildings and machinery, as well as the plant’s expertise in product development and production technology for the growth of its plastic processing business.

    In addition, THI has taken over Hymold’s straw business at the Gunma Plant. The straw business within the SDK Group was consolidated at Hymold in April this year. Earlier, Hymold and Heisei Polymer were respectively manufacturing straw and Showa Denko Plastic Products was selling the product.
  • 2.Heisei Polymer Co., Ltd.
    Heisei Polymer relocated its head office to the site of its Ibaragi Plant in December 2004 to increase efficiency through integration of production and marketing. After the transfer in April of its straw production at the Ibaragi Plant to Hymold, Heisei Polymer is now concentrating on its high-performance product lines, centering on medical and food packaging film businesses.
  • 3.Showa Denko Plastic Products Co., Ltd. (SPP)
    In June this year, SPP transferred its laminated plastic film (cast polypropylene film) business at its Oita Plant to Okamoto Industries, Inc. SPP also transferred its straw business to Hymold in April. SPP will hereafter concentrate on such high-value products as intravenous bags and Pichit moisture removal sheet for perishable foods.

The Showa Denko Group has proceeded with reform of its petrochemicals operations to increase efficiency. Specifically, SDK has strengthened the cost-competitive position of its Oita Petrochemical Complex, expanded its acetyls business by starting overseas production and forming alliances, and restructured its polyolefins business through alliances.

With the latest moves for structural reform of plastic processing businesses, SDK has completed the overall restructuring of its petrochemicals operations.

SDK will hereafter make further efforts to increase the competitiveness of its petrochemicals business by achieving the lowest-cost position and growing competitive derivatives operations.

[Reference]

[Profile of Hymold Co., Ltd.]

President Kazuo Nagashima
Head office Isesaki City, Gunma Prefecture
Capital ¥80 million (owned 100% by SDK)
Number of employees 96
Annual sales ¥4.3 billion (for the term ended December 31, 2004)

Profile of Toyo Denka Kogyo Co., Ltd.]

President Hideo Irimajiri
Head office Kochi City, Kochi Prefecture
Capital ¥300 million
Number of employees 286 (as at March 31, 2005)
Annual sales ¥25.9 billion (for the term ended March 31, 2005)

[History of structural reform of SDK’s plastic processing businesses]

1995 (October) SDK’s plastic processing operation was separated into a newly established subsidiary, Showa Denko Plastic Products Co., Ltd. (SPP).
1997 (April) Three subsidiaries--Gunma Showa Molding Co., Ltd., Sankyo Plas Corporation and Fine Tec Co., Ltd.--were merged into a newly established subsidiary, Hymold Co., Ltd.
1997 (June) SDK transferred its Pichit business to SPP.
2001 (October) Heisei Polymer’s laminate business was transferred and consolidated with that of Showa Denko Packaging Co., Ltd.
2004 (August) Heisei Polymer was delisted, becoming SDK’s wholly owned subsidiary.
2004 (December) Heisei Polymer relocated its head office to the site of its Ibaragi Plant.
2005 (April) The Group’s straw business was consolidated at Hymold.
2005 (May) Hymold sold its assets and business at the Kawagoe Plant to TS Tech.
2005 (June) SPP sold its CPP film business at the Oita Plant to Okamoto.
2005 (July) SDK sold its shares in Hymold to the Toyo Denka Kogyo Group.