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Press Release

April 25, 2007
Sekisui Chemical Co., Ltd.

Mayor of Atlanta, U.S.A. visits Sekisui Chemical Co., Ltd. Head Office in Tokyo

- Exchange of Views with President Okubo of Sekisui Chemical Co., Ltd. on the Problem of Aging Sewage Systems -

Ms. Shirley Franklin, Mayor of the City of Atlanta in the state of Georgia, U.S.A. visited Sekisui Chemical Co., Ltd., President Naotake Okubo in the Tokyo head office in Toranomon, Minato-ku, on April 25.

Mayor Franklin places such importance on sewage-system-related environmental problems that she refers to herself as "the Sewage-system Mayor." Sekisui Chemical Co., Ltd. focuses on water-environment solutions. Mayor Franklin and President Okubo exchanged views on the problem of aging sewage systems.

The background to Mayor Franklin's visit is outlined below.


From the left, Mr. Okubo, President of Sekisui Chemical Co., Ltd., Ms. Shirley Franklin, the Mayor of the City of Atlanta, and an official of the City of Atlanta

Background to Mayor Franklin's Visit

In the U.S.A., problems such as collapse and subsidence of road, water leakage and the spread of malodors caused by the aging and deterioration of sewage pipes have become a serious social issue and the U.S. Environmental Protection Agency has issued orders for improvement to twenty cities and regions across America. In line with these orders, Mayor Franklin was appointed mayor of the City of Atlanta in 2002 with the improvement of sewage systems as her foresighted election pledge.

Meanwhile, Japan has also experienced an increase in the incidence of road subsidence in recent years due both to the aging and deterioration of sewage pipes and rapid increases in volumes of traffic, with incidents of subsidence reported in 6,600 locations in FY2005, making this a major problem.

Sekisui Chemical Co., Ltd. has established global water-environment solutions as a major element of its business policy and, as a link in this process, has been developing sewage rehabilitation pipe business since 1986, promoting the dissemination of SPR methods in the U.S.A. starting with Los Angeles in 2004. In 2005, Sekisui Chemical established Sekisui SPR Americas, LLC., a sewage rehabilitation pipe company, in Atlanta, Georgia and Mayor Franklin showed a deep interest in the SPR method, marking the beginning of the relationship between Sekisui Chemical Co., Ltd. and the City of Atlanta.

In July of last year, Mayor Franklin and President Okubo held discussions in Atlanta and agreed to continue negotiating on the possibility of mutual future cooperation regarding the problem of aging sewage systems in Atlanta.
Against this background, Mayor Franklin has taken advantage of her current visit to Japan to call in on Sekisui Chemical Co., Ltd.

Undertakings with the City of Atlanta

Sekisui SPR Americas, LLC, a subsidiary of Sekisui Chemical Co., Ltd., has proposed an SIT (Self Installation Training) program to the City of Atlanta. This program will provide training in pipe rehabilitation technology for municipal workers to enable the city to develop its own centralized administration of the maintenance, management and rehabilitation of sewage pipes, thereby reducing construction costs and achieving improvements in the sewage-system environment. At the present time, the demonstration stage has been completed and the next step is to move onto practical application of the program.

[Reference]

About the SPR Method

The SPR Method is an approach to construction that involves the rehabilitation of aging pipes by first winding and fitting a belt-shaped profile made of hard vinyl-chloride resin with fittings at both ends into the existing pipe in a spiral configuration and then rehabilitating the deteriorated pipe by injecting special back-filling material into the space between the existing and rehabilitation pipes.


Cross-section of Rehabilitated Pipe

Illustration of SPR Method

Principal Track Record of SPR Method in America
2004: Rehabilitation of approximately 80m of pipe in Los Angeles, California
Rectangular water conduit (4m (W) ×1.6m (H))
2005 -: Rehabilitation of approximately 2,234m of pipe in Los Angeles County, California
2006: U-shaped water conduit (2.6m (W) ×2.6m (H))
2006: Rehabilitation of approximately 392m of pipe in Cleveland, Ohio
Circular water conduit: diameter: 1.5m




Press Contact

Sekisui Chemical Co., Ltd.
Corporate Communication Department
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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