August 8, 2008
SEKISUI CHEMICAL CO., LTD.
SEKISUI TECHNO MOLDING CO., LTD.

Completion of the Aichi Plant of SEKISUI TECHNO MOLDING CO., LTD.
- Accelerating the expansion of the vehicle components business with its locational advantage and new technological developments -

On December 11, 2007, SEKISUI TECHNO MOLDING CO., LTD. (Representative Director and President: Hisao Naka, Sekisui Techno Molding, hereafter), a 100% subsidiary of SEKISUI CHEMICAL CO., LTD. (Representative Director and President: Naotake Okubo, Sekisui Chemical, hereafter), announced the completion of the construction of its new Aichi Plant dedicated to the manufacturing of resin components for the interior and exterior trim of vehicles. Since construction was completed on July 24, 2008, the plant has started full-scale mass production. Inauguration of the Aichi Plant ensures reinforcement of the business foundations of Sekisui Techno Molding and is designed to further expand the vehicle components business of Sekisui Chemical.

1. Business Expansion with the Startup of the Aichi Plant

The completed Aichi Plant is now bolstering our system of meeting customer needs through the full utilization of its locational advantage and the business capacity of Sekisui Techno Molding (such as its technical developments and proposals that contribute to lighter vehicle design and high level new product development capabilities in product design and mold design, etc.). From now on, we intend to make further progress through development collaboration with four-wheeled and two-wheeled vehicle manufacturers for the expansion of order-reception and for the acquisition of new customers. Moreover, the installation of a large-scale injection-molding machine enables us to manufacture products using the new technology of high-magnification foam molding. With this new technology, we intend to advance proposals to our customers for the design of lighter vehicles.

Since the completion of the Aichi Plant, we have been receiving substantial new orders for resin mold components for vehicle interior trim and requests for technical investigations into high-magnification foam mold components, etc. In view of these rapid developments, we expect that the scale of production will increase in the near future, and in FY2009 we are planning to install another large-scale injection-molding machine to extend our product range.

2. Outline of the Aichi Plant of SEKISUI TECHNO MOLDING CO., LTD.

For reference-1 Background to the Setting up of the Aichi Plant

SEKISUI TECHNO MOLDING has been engaged in providing customers with services for the whole process of molded components production from product design, mold development and design, to manufacturing, for the purpose of proposing to automobile manufacturers the optimum product configurations and manufacturing methods. More specifically, in response to the recent increased demand for higher fuel efficiency and lower production costs through the adoption of lighter vehicle bodies, we are providing automobile manufacturers with substitutes for metal by using high-strength resin molded components and with lighter interior trim made using high-magnification foam molding technology, etc. For the further expansion of our components business in the near future, we are focusing on strengthening our business capacity to respond to the various emerging requirements of the four-wheeled and two-wheeled vehicle manufacturers that are concentrated in the Tokai region, not only with general increases in production capacity, but by setting up this new Aichi facility, which is the third plant for vehicle components after the Ohigawa Plant and the Mie Plant.

For reference-2 Outline of SEKISUI TECHNO MOLDING