Chi Mei Corporation of Taiwan (Chi Mei;
President, J. Y. Ho) and Asahi Chemical Industry Co.,
Ltd. of Japan (Asahi; President, Kazumoto Yamamoto)
have reached agreement to jointly establish a company
in Taiwan for production, marketing and sale of polycarbonate
(PC). Under the agreement, stage-one plant construction
for a capacity of 50,000 tons/year is scheduled to begin
in February 2000. The plant design will include equipment
with a 100,000 ton/year capability, to permit a rapid
stage-two plant expansion to that capacity in accordance
with the trend in market demand.
1. Background and significance of joint
venture establishment
The accord originated in the
needs and goals of both companies. With its established
position as the world’s largest ABS producer, Chi Mei
wished to enter into the development of a business operation
in higher-performance plastic. At the same time Asahi,
with its successful development of the next-generation
process for PC production, was investigating the possibility
of its commercialization.
As a major user of Asahi’s basic
chemicals, Chi Mei approached Asahi concerning the
possibility of a joint commercialization effort, and
the two companies began a basic, long-term joint study
leading to the present accord.
The agreement for establishment of
the JV is based on the mutual perception that this
joint endeavor will meet both the need of Chi Mei
for business expansion and the need of Asahi for commercialization
of the next-generation PC production technology, and
that the joint business development will achieve a
level of profitability satisfactory to both companies.
The demand for PC is rising rapidly
worldwide, in accordance with the growing needs for
flame-retardant polymer alloys of PC and ABS in OA
and other business equipment housings, and for the
combination of high transparency and rigidity provided
by PC in optical disks.
Taiwan is one of the world’s leading
production bases for OA and other business equipment,
and holds the potential to become a global base for
production and supply of optical disks. Despite the
trend of increasing PC demand growth, however, Taiwan
currently has no PC production facilities and is thus
completely dependent on imports for this material,
due mainly to environmental problems related to conventional
processes of PC production.
Asahi’s next-generation PC production
process is environment friendly, as a non-phosgene,
non-methylenechloride process, and meets the growing
requirement for PC with the higher quality and performance
that will permit the production of higher-performance
products and increased productivity by the PC users.
Development of the commercial PC
production by Chi Mei and Asahi, as the first in Taiwan,
holds a special significance not only to both of our
companies but also, we believe, to the Taiwanese economy
and community, through its contribution to the continuing
business growth of its OA equipment and optical disk
manufacturers and to the natural environment.
2. Joint venture and PC plant construction
in profile
| Name: |
Chimei-Asahi Corporation |
| Capitalization: |
NT$1.23 billion (approx.
¥4.43 billion) |
| Shareholders: |
51%, Chi Mei Corporation; 49%,
Asahi Chemical |
| Capital investment: |
Approx. NT$2.5 billion
(approx. ¥9 billion) for Stage-1 plant construction
(50,000 t/yr) |
| Plant location: |
Current office and plant
site of Chi Mei Corporation, Jen Te Tainan County, Taiwan |
| Plant capacity: |
Stage-1, 50,000 t/yr
Stage-2, 100,000 t/yr (50,000 t/yr expansion) |
| Construction schedule: |
Groundbreaking, February 2000
Commercial start-up, October 2001 |
|
