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SDK to Absorb SEC's Engineering Business

Showa Denko K.K.
September 24, 2009

Showa Denko K.K. (SDK) has decided to absorb the engineering business of its consolidated subsidiary Showa Engineering Co., Ltd. (SEC).

SDK will establish an Engineering Center as a unit within its Technology Headquarters on January 4, 2010 to take over the plant design and construction operations currently managed by SEC’s head office. Operations at SEC's local office in Kawasaki will be transferred on the same date to the Engineering Department of SDK's Kawasaki Plant. Meanwhile, operations at SEC's local office in Oita will be transferred to the Engineering Department of SDK’s Oita Complex on June 1, 2010.

As a result of these organizational changes, SDK will take a unified control of plant design and construction operations for its Group companies, cutting down the lead time from product development to commercialization. SDK will also be able to utilize human resources more efficiently, coping with the expected shortage of engineers due to the diversification of operations and the increase in retirement.

In addition to performing the plant design and construction operations, the new Engineering Center will provide engineering support to the Group companies' energy-conservation and environmental-protection efforts, accelerating the reductions in greenhouse gas emissions. The center will take over SEC's business pertaining to the disposal of volatile organic compounds.

SEC's employees will be transferred to SDK when respective functions are transferred to SDK’s Engineering Center, Kawasaki Plant, and Oita Complex, respectively. SEC will stop receiving new orders effective January 2010.

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