Nippon Shokubai Announces Closure of Suita Plant and Plans to Bolster its R&D Facilities There

Nippon Shokubai Co., Ltd. (president: Masanori Ikeda; TSE code: 4114; hereafter, “Nippon Shokubai” or the “Company”) announced today that at the end of 2014 it ceased manufacturing at its Suita Plant in the city of Suita, a production facility which played a key role in the Company’s growth. In the future, however, the Company plans to bolster its R&D operations in the area by constructing a new research and development facility.

The Suita Plant was opened in 1943 for the purpose of boosting production of phthalic anhydride, for which demand was growing at the time. Since then, the plant has served as a cornerstone of the Company’s expansion as it began manufacturing maleic anhydride in 1952, unsaturated polyester resin in 1953, acrylic resin for paint and adhesives in 1970, and fine particle products in 1990.

The plant’s production capacity decreased, however, as a result of the transfer of Nippon Shokubai’s unsaturated polyester resin business to Japan Composite Co., Ltd., a joint venture between the Company and Mitsui Chemicals, Inc. The proliferation of residences surrounding the plant also created difficult conditions for continuing production.

In light of these circumstances, Nippon Shokubai proceeded to transfer production from the Suita Plant to its other manufacturing facilities and finally terminated the plant’s production operations at the end of 2014.

Looking ahead, Nippon Shokubai plans to bolster its R&D operations in the area as the plant was located by constructing a new research and development facility, scheduled for completion in 2016. Designed to quickly and efficiently take idea creation to the next stage of incubation (including support for new business startups), the new R&D center will actively promotes open innovation. It will also speed up the development of new products needed to drive the Company’s growth going forward.

【Contacts】
Investor & Public Relations Dept.,
NIPPON SHOKUBAI CO., LTD.
TEL: +81-3-3506-7605
E-mail: shokubai@n.shokubai.co.jp