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Schedule to Acquire Mitsubishi Plastics' Piping Materials Operations
Oct 3, 2012
SEKISUI CHEMICAL CO., LTD

SEKISUI CHEMICAL CO., LTD. (President: Naofumi Negishi, hereinafter called "Sekisui Chemical") signed a comprehensive statement of mutual agreement on July 10 regarding the acquisition of piping materials operations from Mitsubishi Plastics, Inc. (President and CEO: Takumi Ubagai, hereinafter called Mitsubishi Plastics) and this is to notify that the negotiations have proceeded since then, and at this time, acquisition is scheduled to be implemented on December 1 this year as described below, and the procedures are progressing.
Further, regarding this acquisition, a "notification to the effect that a cease and desist order will not be issued" dated August 9 was received from the Fair Trade Commission, and has been approved.
In future, this will accelerate, and advance the "integrated power development" and "value chain business expansion" currently being promoted by the Urban Infrastructure and Environmental Products Company, to aim toward becoming a leading company in the urban infrastructure business.

Note

1. Scheduled date for the acquisition of this business

  • The scheduled date for the acquisition of this business is December 1.

2. Details of the Acquisition
(1) Part of personnel, assets, contracts and intellectual property, associated with the piping materials operations of Mitsubishi Plastics
Note. The piping materials operations mentioned above exclude the cold piping materials operations (the crosslinked polyethylene pipes business)
(2) Part of personnel and contracts, associated with the piping materials operations of Mitsubishi Plastics Marketing Co., Ltd. and RYOJU CORPORATION
(3) Part of machinery and equipment associated with the piping materials operations of Ryobi Techno Inc.
(4) Stocks in the following piping materials-associated companies held by Mitsubishi Plastics
  • Toyo Plastics Industries Corp.
  • Hanyu Plastics Industries Ltd.
  • WUXI SSS-DIAMOND PLASTICS CO., LTD.
  • M&S Pipe Systems Co., Ltd

3. Client continuity

  • We would like to ask the clients of Mitsubishi Plastics to begin transferring their business relations to Sekisui Chemical starting October this year, in preparation for the business acquisition.

4. Production systems

  • The production equipment to be acquired will start transfer in order to the Sekisui Chemical group site from October this year, and is scheduled to be completed by the end of FY2012.
  • This acquisition will enable not only surplus production capacity of high-level products to be assured for remodeling and earthquake-resistant applications, which will increase in the future, but also pursue the ultimate costs by establishing manufacturing bases for general products in each area.

5. Employees

  • The approx. 200 employees of the Mitsubishi Plastics Group employed for the acquired work (Mitsubishi Plastics, Inc.・Mitsubishi Plastics Marketing Co., Ltd.・RYOJU CORPORATION) and of companies whose stocks will be acquired are scheduled to become employees of Sekisui Chemical Group concomitant with the acquisition.
  • This acquisition aims to further expand business results by augmenting piping materials operations personnel, who were insufficient, by shifting personnel to the value chain business.

<Reference (1)> Outline of company whose business will be taken over (acquisition of associated business or machinery and equipment only)

Company Name Mitsubishi Plastics Marketing Co., Ltd.
Address (Mitsubishi Plastic Bldg.)
1-2-2 Nihonbashi Hongoku-cho,Chuo-ku,Tokyo
Representative President Ryohei Ogawa
Month and Year of Establishment July 2010
Capital 4 million yen
Principal Business Sales of Mitsubishi Plastics products
Stockholders Mitsubishi Plastics: 100%
Number of Employees Approx. 280

Company Name RYOJU CORPORATION
Address (Daiwa-Ueno Bldg.)
5-6-10 Ueno,Taito-ku,Tokyo
Representative President Shinji Koshino
Month and Year of Establishment November 1955
Capital 3.5 million yen
Principal Business Sales of plastics and plastic products
Stockholders Mitsubishi Plastics: 100%
Number of Employees Approx. 120

Company Name Ryobi Techno Inc.
Address 1 Tsukigase-cho,Nagahama City,Shiga Prefecture
Representative President Takehiko Watanabe
Month and Year of Establishment August 1965
Capital 4 million yen
Principal Business Manufacture and sales of plastic products
Stockholders Mitsubishi Plastics: 100%
Number of Employees Approx. 180

<Reference (2)> Outline of company whose stocks will be bought out (as of July 10, 2012)

Company Name Toyo Plastics Industries Corp.
Address 300 Kamijo Araimachi,Kofu City,Yamanashi Prefecture
Representative President Yoshihiro Fujimi
Month and Year of Establishment May 1955
Capital 130 million yen
Principal Business Manufacture and sales of injection, extrusion and blow molded products
Stockholders Mitsubishi Plastics Group: 100%
Number of Employees Approx. 90

Company Name Hanyu Plastics Industries Ltd.
Address 392 Kami-iwase,Oaza,Hanyu City,Saitama Prefecture
Representative President Ryuichiro Nakamura
Month and Year of Establishment May 1918
Capital 200 million yen
Principal Business Manufacture and sales of extrusion molding products
Stockholders Mitsubishi Plastics: 99.8%
Number of Employees Approx. 70

Company Name WUXI SSS-DIAMOND PLASTICS CO., LTD.
Address Wuxi National High & New Technology Industrial Development Zone, Wuxi, Jiangsu
Representative President & CEO Tsutomu Nakamura
Month and Year of Establishment June 2002
Capital 4 million U.S. dollars
Principal Business Manufacture and sales of plastic joints
Stockholders Sekisui Chemical: 51%, Mitsubishi Plastics: 49%
Number of Employees Approx. 150

Company Name M&S Pipe Systems Co., Ltd.
Address (Shimbashi TS Bldg.)
1-22-5 Nishi Shimbashi,Minato-ku,Tokyo
Representative President Takashi Hariu
Month and Year of Establishment April 2002
Capital 20 million yen
Principal Business Consultation for manufacturing and shipping pipes and joints
Stockholders Sekisui Chemical: 51%, Mitsubishi Plastics: 49%
Number of Employees 2


Press Contact

SEKISUI CHEMICAL CO., LTD.
Corporate Communication Department, Public Relations Group
Fax:(+81)3-5521-0510

Disclaimer

This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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