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Press Release

December 11, 2007
Sekisui Chemical Co., Ltd.
Sekisui Techno Molding Co., Ltd.

New Factory for the Manufacture of Plastic Components
for Car Interiors and Exteriors to be Established in Aichi in April 2008

- Sekisui Techno Molding Co., Ltd. aims to achieve a company-wide sales volume of 23 billion yen by FY2010 through business expansion centered on auto-parts -


Sekisui Techno Molding Co., Ltd. (Head Office: Ikoma-gun, Nara Prefecture, Representative Director and President: Hisao Naka, hereinafter referred to as "Sekisui Techno Molding"), a wholly-owned subsidiary of Sekisui Chemical Co., Ltd. (President and Representative Director: Naotake Okubo, hereinafter referred to as "Sekisui Chemical"), is pleased to announce its decision to establish a new factory in Aichi Prefecture for the manufacture of plastic components for car interiors and exteriors with a planned launch date of April next year. This move is aimed at achieving further business expansion in the field of automotive-materials, the strategic business sphere of Sekisui Chemical's High Performance Plastics Company. Additionally, by positive expansion of its auto-parts business, Sekisui Techno Molding aims to achieve a sales volume of 23 billion yen in FY2010.

1. Overview of the Sekisui Techno Molding Aichi Factory

Products manufactured : Plastic parts for 4-wheel/2-wheel vehicle interiors and exteriors, etc.
  Examples of products : 4-wheel vehicles: Door trims, package trays, bumpers, grills, etc.
2-wheel vehicles: Handle sheets, cowlings, front fenders, etc.
Production capacity : 135 tons/month
Site area : 20,000m2
Total floor space : 8,600m2
Employees : 35
Date of launch : April 2008
Location : Wakamatsu-cho, Toyohashi-shi, Aichi Prefecture (Industrial Park, Public Enterprises Agency, Aichi Prefecture)
Amount invested : Approximately 500 million yen

2. Background to Establishment of New Aichi Factory

Over the years of its history, Sekisui Techno Molding has employed an integrated process covering product design to the design, development and manufacture of molds to supply optimum product forms and manufacturing methods to its customers in the automobile manufacturing industry. Recent years have seen a conspicuous increase in needs arising from improved fuel-consumption and low cost due to lighter car bodies and, in response to these needs, Sekisui Techno Molding Co., Ltd. has pushed forward with the development of unique technologies to develop, for example, high-enlargement expansion-molding technology for use in metal-substitute technology that makes use of high-strength resin-mold parts and in the production of lightweight large interior parts. This has given rise to the need to increase production volumes and secure new manufacturing capabilities. While so far, the organization of bases has involved the launch of the Mie Factory in 2002 following the establishment of the Oigawa Factory, the decision has recently been made to set up a new factory in Toyohashi-shi, Aichi Prefecture with the aim of enhancing support capabilities in the Tokai region, an area with a concentration of 2 and 4-wheel vehicle manufacturers. By reinforcing its organization with close ties to its customers, Sekisui Techno Molding aims to expand its auto-parts business by engaging in further joint-development undertakings with its customers.

3. About Sekisui Techno Molding

1)  Content of Business
Currently, Sekisui Techno Molding is pushing ahead with major expansions in the two spheres of auto-parts business and industrial products business.
(1)  Auto-parts Business
Armed with design and development capabilities together with manufacturing technology strengths capable of creating high-added-value products that provide greater productivity to meet customer needs and that make full use of its skills in putting forth proposals to customers coupled with an abundance of technical know-how and computer analysis, Sekisui Techno Molding Co., Ltd. is engaged in the manufacture and sales not only of plastic parts for the interiors and exteriors of 2 and 4-wheel vehicles, but also plastic bodies and peripheral plastic parts for vehicles such as buggies, snowmobiles and golf cars.
(2)  Industrial Products Business
Based on its plastic injection molding technology, Sekisui Techno Molding is engaged in the manufacture and sales of products including distribution containers for industrial use, foodstuffs, agriculture and fisheries, separate- collection containers and OA floors as well as "Crosswave," a groundwater reservoir system that contributes to the flow control and effective use of rainwater.
2)  Bases
(1)  Head Office: 1135-5 Kubota, Ando-cho, Ikoma-gun, Nara Prefecture
(2)  4 Factories: Head Office Factory (Nara), 2nd Nara Factory, Mie Factory, Oigawa Factory
(Aichi Factory to be opened in April next year)
Factory Name Date Established Main Products Manufactured
Oigawa Factory June 1990 Plastic parts for 2-wheel vehicles (fenders, cowlings, etc.)
Head Office Factory (Nara) October 1997 Transport containers, groundwater reservoir system materials, OA floors
Mie Factory June 2002 Plastic parts for 4-wheel vehicles (bumpers, trims, spoilers, etc.)
2nd Nara Factory October 2003 Environmental products (recycling containers, separate-collection containers, etc.)
Aichi Factory April 2008 Plastic parts for 2 and 4-wheel vehicles
(3)  3 Sales Offices: Kinki, Chubu, Tokyo
3)  Future Business Development and Goals
Sekisui Techno Molding is aiming to achieve positive expansion of its auto-parts business with penetration of overseas markets as one of its goals. The industrial products business will, in future, specialize in areas such as the development of environmental products incorporating high added value.
Sekisui Techno Molding aims to realize a company-wide sales volume of 23 billion yen by FY2010.
4)  Principle Customers
Yamaha Motor Co., Ltd., Daihatsu Motor Co., Ltd., Suzuki Motor Corporation, Toyota Boshoku Corporation, Kojima Press Industry Co., Ltd., Suiryo Plastics Co., Ltd.
5)  Date established: August 1962 (Established as Tokai Eslon Kogyo Co., Ltd)
6)  Capital: 200 million yen

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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