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SDK to Expand High-Purity Ammonia Business for Electronics

Showa Denko K.K.
November 20, 2008

--To Build New Plant in China; Expansion in Taiwan Completed--

Showa Denko K.K. (SDK) will shortly establish a joint venture in Quzhou, Zhejiang Province, China to produce high-purity ammonia for the electronics industry. The joint venture, Zhejiang Quzhou Juhua Showa Electronic Chemical Materials Co., Ltd., to be owned 51% by SDK, will soon begin construction of a 500-ton-a-year high-purity ammonia plant for start-up in June 2009.

Two Chinese companies—Zhejiang Juhua Co., Ltd. and its affiliate Zhejiang Jinju Chemical Co., Ltd.—will hold a combined share of 49% in the new company. Zhejiang Jinju Chemical will supply raw material industrial ammonia as well as electricity and other utilities to the new plant. The joint venture will use SDK’s purification technology for the production of high-purity ammonia and sell all products to companies within the Showa Denko Group.

Reflecting the growth of the Chinese electronics industry, demand for high-purity ammonia is rapidly increasing in that country. SDK has decided to meet this growing demand by building a new plant and arranging for containers for transportation. Depending on future demand, SDK will consider the possibility of expanding the production capacity of the plant to 1,000 tons a year by the end of 2010.

In a related move, SDK has expanded its high-purity ammonia production capacity at its subsidiary Taiwan Showa Chemicals Manufacturing Co., Ltd., from 1,200 tons a year to 1,500 tons a year.

High-purity ammonia is used as a nitride-film-forming gas in the production process of semiconductors, liquid crystal displays (LCDs), and gallium-nitride LEDs. It is also increasingly used for the production of solar cells based on polycrystalline silicon.

Fully utilizing the new plant in China and existing production sites in Japan (Kawasaki) and Taiwan (Tainan), SDK will strengthen its supply of high-purity ammonia to the growing East Asian market. SDK is aiming to expand semiconductor-processing materials operation as one of its strategic businesses.

Reference

1. Outline of the new company

  • 1.Company name:
    Zhejiang Quzhou Juhua Showa Electronic Chemical Materials Co., Ltd.
  • 2.Location:
    Quzhou, Zhejiang Province, China
    (Approx. 350 km southwest of Shanghai)
  • 3.Capital:
    30 million renminbi (Approx. 480 million yen)
  • 4.To be established in November 2008
  • 5.Ownership:
    Showa Denko K.K. 51%; Zhejiang Jinju Chemical Co., Ltd. 29%;Zhejiang Juhua Co., Ltd. 20%
  • 6.Scope of business:
    Production and sale of high-purity ammonia
  • 7.Scope of business:
    Production and sale of high-purity ammonia
  • 8.Chairman:
    Toshio Ohi
    (Director & Corporate Officer; Executive Officer, Chemicals Sector, Showa Denko K.K.)

2.Outline of Chinese shareholders

Zhejiang Juhua Co., Ltd.

Head office Quzhou, Zhejiang Province, China
Capital 556.8 million renminbi (Approx. 8.9 billion yen)
Establishment 1998
Scope of business Production and sale of chemicals
Chairman Zhixiang Ye

Zhejiang Jinju Chemical Co., Ltd.

Head office Quzhou, Zhejiang Province, China
Capital 350 million renminbi (Approx. 5.6 billion yen)
(Owned 60% by Zhejiang Juhua Co., Ltd. and its group companies)
Establishment 2008
Scope of business Production and sale of chemicals
Chairman Fengtao Wang

For further information, contact:
IR & PR Office (Phone: 81-3-5470-3235)