| Précis
Asahi
Chemical Industry Co., Ltd. (“Asahi Chemical”
hereinafter; Head Office, Tokyo; President,
Kazumoto Yamamoto) and Nippon Steel Chemical
Company, Ltd. (“NSCCL” hereinafter;
Head Office, Tokyo; President, Takaki Yamatoya)
today concluded the basic agreement for transfer
to Asahi Chemical of all the shares held by
NSCCL in its subsidiaries in the U.S.A. and
Europe for compounded resins production. Under
the basic agreement, the share transfer is to
be concluded in late June, for a total consideration
of approximately ten billion yen. |
| Strategic Context and Objectives
For
Asahi Chemical, the high performance resin compounds
business is a key element of its ISHIN2000
strategic midrange program initiated in April
1999 for corporate success and growth in an
environment of pervasive international competition,
as a competitive-superiority segment of the
chemicals business portfolio. For the strengthening
and growth of this key business, an organizational
restructuring currently in progress will enhance
the customer oriented operations and focus,
and the capabilities for Leona® nylon 66
and other resins are being heightened and expanded.
In the globalization of business and industry,
the customer needs are also global. To meet
the needs of customers in the automotive, electrical,
and electronics industries of Europe and North
America, in particular, the requirement has
emerged for locally based operations, to serve
each region through the provision of high performance
resins and resin compounds production, and technical
support.
Acquisition
of the NSCCL affiliates for resin compounds production
will provide the bases for high performance resin compounds
production in Europe and in North America. Together
with the Southeast Asia production base of our Asahikasei
Plastics (Thailand) affiliate, they will become part
of a global configuration for operations in high performance
resin compounds which will enable broad, effective deployment
and utilization of the advanced product and process
technologies of Asahi Chemical, and fine, close response
to customers in the automotive and the electrical and
electronic industries, a configuration of development,
technical support, and product supply in Europe, North
America, and Asia.
|
Profile of NSCCL affiliates scheduled for
acquisition by Asahi Chemical
Nippon Steel Chemical Corporation
of America (NSCCA)
| President: |
Hiroshi Higuchi |
| Head office: |
Michigan, U.S.A. |
| Establishment: |
December 1988 |
| Share capital: |
US$13,585 thousand (approx.
¥1,400 million*; consolidated-base, including
capital reserves, as of December 1999) |
| Shareholder: |
Wholly owned by Nippon Steel
Chemical Company, Ltd |
| Business: |
U.S. holding company with two
affiliates: |
|
- Thermofil,
Inc. (TI); production and sale of compounded
resins, approx. 40 thousand tons/yr; head office
and plant, Michigan, U.S.A.; wholly owned by
NSCCA
- Kelley &
Associates Company, Inc. (K&A); production
and sale of recycled plastic materials; head
office in Michigan, plant in Georgia, U.S.A.;
wholly owned by TI
|
| Sales: |
US$56,131 thousand (approx.¥5,900
million*; consolidated-base, year ended December
1999) |
| Employees: |
120 (including affiliates' employees) |
NS&N (UK) Ltd.
| President: |
Jun Inoue |
| Head office: |
Hampshire, U.K. |
| Establishment: |
July 1991 |
| Share capital: |
£11,100 thousand (approx.
¥1,900 million*; consolidated-base, as of December
1999) |
| Shareholder: |
NSCCL, 80%; Nichimen Corporation
and others, 20% |
| Business: |
U.K. holding company with three
affiliates: |
|
- Thermofil
Polymers (UK) Ltd. (TPL); production and sale
of compounded resins, approx. 20,000 tons/yr;
head office and plant at Hampshire, U.K.; wholly
owned by NS&N
- Thermofil
Polymeres (France) S.A. (TPSA); production and
sale of compounded resins, approx. 10,000 tons/yr;
head office and plant at Bouches-de-Rhone, France;
wholly owned by NS&N
- Thermofil
Polimeri (Italia) Srl (TPSrl); sale of compounded
resins; head office at Vercelli, Italy
|
| Sales: |
UK£30,146 thousand (approx.
¥5,100 million*; consolidated-base,year ended
December 1999) |
| Employees: |
170 (including affiliates' employees) |
* At exchange rates of £105 per US$ and US$1.6 per UK£.
| Transfer price: |
Approx. ¥10 billion
(¥10,000,000,000) |
|
|
| Target dates: |
Conclusion of definitive agreement
scheduled for late May 2000
Share transfer scheduled for June 30, 2000
|
|
