December 3, 2008
SEKISUI CHEMICAL CO., LTD.

Expansion of Production Capacity of Raw Materials for Interlayer Film for Laminated Glass
- Establishment of Second Factory in Netherlands Raw Materials Production Plant That Serves as the Raw Materials Supply Base for Europe -

The High Performance Plastics Company (President: Takayoshi Matsunaga) of SEKISUI CHEMICAL CO., LTD. (President: Naotake Okubo, hereinafter "SEKISUI CHEMICAL") will be adding a new line to its production plant for interlayer film raw materials resin for laminated glass in the Netherlands that will serve as a second production facility.

SEKISUI CHEMICAL is expanding production and sales of interlayer film for laminated glass on a global scale and, for interlayer film for automobiles in particular, boasts the world's top share of 42% (Estimated by SEKISUI CHEMICAL, FY2007).

1. Background

SEKISUI CHEMICAL's interlayer film business is expanding due to increased production volume to meet the needs of heightened automobile production levels in emerging countries, particularly in Asia, and enlargement of the area of glass used in a single automobile. Additionally, demand for SEKISUI CHEMICAL's high performance interlayer film such as sound insulating film, solar control film and sound and solar control film is on the increase to the meet the needs of enhanced levels of on-board comfort in developed countries such as Japan, Europe and the Americas.

At the present time, SEKISUI CHEMICAL's sound insulating film is used one out of every six new automobiles sold throughout the world (Estimated by SEKISUI CHEMICAL, FY2008), showing a steady year on year rate of expansion. To meet these demands, SEKISUI CHEMICAL has enhanced the functionality of interlayer film in recent years with the aim of strengthening production capacity and has decided to add a high-performance interlayer film-dedicated line and a raw material resin production line at its Shiga-Minakuchi Plant and a film production line at its plant in China (Announced on July 8, 2008).

Moreover, to meet market needs, SEKISUI CHEMICAL has developed new products for front glass for automobiles ("High-performance Interlayer Film for Head-up Display" "Interlayer Film for a Front Glass That Extends up over the Roof," announced on October 1, 2008).

2. Addition of Raw Material Resin Production Line at Plant in the Netherlands

At the present time, SEKISUI CHEMICAL's interlayer film production plants are continuing full production against a background of growing demand for High-Performance Interlayer Film and heightened demand arising from an increase in models using High-Performance Interlayer Film forecasted in the future. To meet this demand, SEKISUI CHEMICAL has determined that it needs to strengthen its interlayer film production capacity and increase production of the necessary raw material resin in future and, to this end, has decided to invest approximately 10 billion yen to establish an additional raw material resin production line that will become the second production facility at its plant in the Netherlands that serves as the raw materials supply base for Europe.

The addition of this line will result in realization of an increase in production of 15 million units/year when the line goes into operation in July 2010.

3. Goal of Business

Achievement of 44% share of the global automotive market for interlayer film in FY2010.

<Reference>

List of Interlayer Film Production Bases