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Establishment of a Joint Venture for Vehicle Components Molding Business in Indonesia
Nov 15, 2012

SEKISUI CHEMICAL CO., LTD
SEKISUI TECHNO MOLDING CO., LTD.
Establishment of the first manufacturing base for the Sekisui Chemical Group in Indonesia

SEKISUI CHEMICAL CO., LTD. (President: Naofumi Negishi, hereinafter called "Sekisui Chemical"), and the Indonesia injection mold manufacturer and sales company PT ADYAWINSA DINAMIKA(hereinafter called "ADW")have agreed to establish a joint venture company with an ownership ratio of Sekisui Chemical 51%, and ADW 49% for vehicle use injection mold production and sales in Bekasi city, West Java, Indonesia.
Sekisui Chemical Group has established its first manufacturing base here to continue making inroads into Indonesia after establishing the sales company PT SEKISUI INDONESIA last year.
Further, the operating body of the new joint venture company will be supervised by SEKISUI TECHNO MOLDING CO., LTD. (President: Mikiya Idehara; hereinafter called "Techno Molding"), which is a 100% subsidiary company of Sekisui Chemical.

1. Background

Indonesia's economic growth is remarkable. The per capita GDP in 2010 was over 3,000 dollars, and the speed of motorization shows great potential. Japanese vehicle manufacturers share in Indonesia is more than 90% and Japanese components manufacturers are also expected to make inroads.
Techno Molding's injection molding business is one of the core businesses in the automotive field, which is a strategic business field of Sekisui Chemical's High Performance Plastics Company (President: Takayoshi Matsunaga). Techno Molding has strong ties with domestic vehicle manufacturers and collaborates with them from the product planning and design stage. And, it has speedily met vehicle manufacturers' needs for high quality and light weight with its core injection molding technology.
Furthermore, with the aim of expanding its business in emerging markets that are leading the world's economy, it is now making inroads into Indonesia after establishing a manufacturing base in India in August of last year.
On the other hand, ADW has a track record for injection mold production and sales for home appliances and a portion of the vehicle components field. And, they are now planning for a full-fledged entry into the vehicle components field.


2. Purpose of Establishing the Joint Venture

The purpose of the joint venture is to expand business with vehicle manufacturers in Indonesia, and establish a business base for the injection molding business there.


1) To be the foremost competitor by using the advantage of Sekisui Chemical and Techno Molding products, technology, and design.
2) To build up a business base in Indonesia centered on Japanese vehicle manufacturers by adding Japanese manufacturers trust for Techno Molding's quality and technology to ADW's production and sales track record in Indonesia.
3) The fusion of the products Techno Molding has that contribute to lighter weight (metal substitute products and foam mold products) and its insert molding, and mold design technology, along with the metal press technology of ADW will exploit a technological synergy for market entry.

3. Business Objectives

Production and sales start in May 2013 with the aim of sales reaching three billion yen by FY2015.


4. Overview of the Joint Venture Companies
1) Company Name : PT ADYAWINSA SEKISUI TECHNO MOLDING
2) Investment Ratio : 51%by Sekisui Chemical, 49% by ADW
3) Established : January 1, 2013 (Scheduled)
4) Business Description : Injection mold production and sales (vehicle components field)
5) Location : Delta Silicon Industrial Park, South Cikarang area, Bekasi city, West Java, Indonesia
6) Employees : Approximately 130

References (1) Overview of ADW
1) Company Name : PT ADYAWINSA DINAMIKA
2) Representative : Markus Maturo
3) Business Description : Sheet metal press and injection mold production and sales (relating to home appliances and vehicle components)
4) Established : 1994
5) Capital : 530 million yen (63 billion Indonesian Rupiah) (Note: Converted using100 Indonesian Rupiah=0.84 yen)
6) Employees : Approximately 5000 (as of January 1, 2012)
7) Sales : Approximately 7.1 billion yen (FY 2011)

References (2) Overview of Techno Molding
1) Company Name : SEKISUI TECHNO MOLDING CO., LTD.
2) Representative : Mikiya Idehara
3) Business Description : Injection mold production and sales (relating to vehicle components and their distribution, the environment, and civil engineering)
4) Established : 1962
5) Capital : 200 million yen
6) Employees : 127 (as of April 1, 2012)
7) Sales : Approximately 10.6 billion yen (FY2011)

<Chart and image>

1. Techno Molding's main products

■Four wheeled vehicle components

Four wheeled vehicle components
Four wheeled vehicle components

■Two-wheeled vehicle components
Two-wheeled vehicle components
Two-wheeled vehicle components

Two-wheeled vehicle components (Fenders)

2. Plant in the Delta Silicon Industrial Park
Plant in the Delta Silicon Industrial Park


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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