Strengthened Chlorinated Polyvinyl Chloride (CPVC) Production Capacity

-Meeting Expanding Demand in Emerging Countries-

SEKISUI CHEMICAL CO., LTD. (hereinafter called "Sekisui Chemical") is rolling out high-performance resin business for the production and sale of chlorinated polyvinyl chloride (hereinafter called "CPVC") and polyvinyl alcohol resin ("PVA").
CPVC is mainly used as a raw material in heat-resistant pipes, and Sekisui Chemical sells it both in Japan and other countries. In recent years, in Asia, demand for CPVC for heat-resistant pipes has grown rapidly, and Sekisui Chemical has decided on this occasion to strengthen production capacity to meet these needs.
In the future as well, there is the prospect of increased CPVC demands centering on the emerging countries of Asia, and Sekisui Chemical is focusing on demand trends with the aim of expanding our high-performance resin business with the focus also on new overseas production bases.


Note

1. CPVC Features and Applications

CPVC is a special type of polyvinyl chloride (PVC) with added chloride, and is mainly used as a raw material in pipes for supplying hot water, industry, and sprinklers, etc., which require heat resistance.


2. Market Background

In recent years, the switch from metal to CPVC in pipes used in buildings such as homes and factories, etc., in the emerging countries of South Asia and the Middle East has been progressing. In parallel, construction demand concomitant with economic growth is also booming. Concomitantly, demand for CPVC is growing every year, and solid expansion is also expected in the future.

3. Details of Strengthened CPVC Production Capacity

Production site

: TOKUYAMA SEKISUI CO., LTD. (A consolidated subsidiary of Sekisui Chemical. Location: Shunan City, Yamaguchi Prefecture

Production capacity

: 40,000 metric tonnes/year (after strengthening. Currently 33,000 metric tonnes/year)

Details

: Expanded facilities and the introduction of equipment

Scheduled completion

: Summer 2013



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.