July 8, 2008
SEKISUI CHEMICAL CO., LTD.

Addition of New Production Lines for Interlayer Film for Automobiles in Shiga Minakuchi Plant and China Plant
- Augmentation of High-performance Interlayer Film Production Capacity and Reinforcement of Production System in Regions of High Demand -

The High Performance Plastics Company (President: Takayoshi Matsunaga) of SEKISUI CHEMICAL CO., LTD. (President: Naotake Okubo, Hereinafter referred to as "SEKISUI CHEMICAL") has installed new lines for the production of interlayer film for laminated glass in both Japan and China. SEKISUI CHEMICAL is expanding its production and sales of interlayer film for laminated glass on a global scale and boasts the top share of 42% of the world market for interlayer film for automobiles (Company forecast, FY2007).

To meet the growing demand for high-performance interlayer film, we have installed a sixth production line in our Shiga Minakuchi Plant (Koka City, Shiga Prefecture). The new line will be dedicated to the production of high-performance interlayer film. This is the first new interlayer-film production line to be installed in the Shiga Minakuchi Plant in the twenty years since 1988 and is intended both to meet the growing demand for high-performance interlayer film, a product that is showing a promising level of sales, and to cope with the development and production of new high-performance interlayer film. Additionally, in tandem with augmentation of the high-performance interlayer film production capacity, a new line for production of raw material (resin) has also been installed to reinforce the production system.

Meanwhile, against a background of accelerated global expansion, we have installed a second line in our existing plant in China (SEKISUI S-LEC (SUZHOU) CO., LTD.). Although the operation at the plant was launched in September 2004 to meet local demand, the dramatic growth in demand in China has resulted in a current situation where exports mainly from Japan are still supporting supply. We plan to further strengthen our competitiveness by increasing our production capacity on the Chinese market where continued growth in demand is anticipated in the future.

A total of approximately 10 billion yen has been invested in this project. Our goal is to achieve a 44% share of the global market for interlayer film for automobiles in FY2010 by simultaneously strengthening our high-performance interlayer film capacity, a field in which we lead the industry with our product line-up, and augmenting our capacity on the Chinese market where the continuing growth in demand is anticipated.

1. Overview of Plants where New Lines will be installed

2. About SEKISUI CHEMICAL'S Interlayer Film Operations

SEKISUI CHEMICAL'S interlayer film operations is expanding due to increased production volume to meet the needs of heightened automobile production levels in Asia and enlargement of the area of glass used in a single automobile. Additionally, demand for high performance interlayer film such as Sound Acoustic Film, Solar Control Film and Sound and Solar Film is on the increase to meet the needs of enhanced levels of on-board comfort in Japan, Europe and America.

At the present time, SEKISUI CHEMICAL'S Sound Acoustic Film is used in one out of every seven new automobiles (Estimated by SEKISUI CHEMICAL, FY2007), showing a steady rate of expansion. Taking advantage of this trend, SEKISUI CHEMICAL opened an interlayer film raw materials plant in the Netherlands in 2007 following Japan, and the world's sixth plant for interlayer film for automobiles in America.

SEKISUI CHEMICAL plans to make positive advances through the development and expansion of sales of high performance interlayer film at the same time expanding its interlayer film operations through strategies including the expansion of manufacturing bases in BRICs countries such as China and India, where automobile production continues to grow.

3. List of Interlayer Film Manufacturing Bases