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NIPPON SHOKUBAI announces NIPPON SHOKUBAI EUROPE N.V., a subsidiary in Belgium (“NSE”), plans to expand its Superabsorbent Polymer (“SAP”) plant and build its Acrylic Acid (“AA”) plant.

May. 11, 2015Investor Relations

NIPPON SHOKUBAI CO., LTD. [Tokyo Stock Exchange TSE:4114]("NIPPON SHOKUBAI") hereby announces that NIPPON SHOKUBAI has resolved, at its board meeting held on 11th May, 2015, to give approval to the investment plan at NSE.
The plan is to build SAP plant with 100,000 metric tons per year(“T/Y”) and AA plant with 100,000 T/Y, as follows.

1. Background of the investment
SAP, one of NIPPON SHOKUBAI’s core businesses, shows steady growth of demand as a key material of disposable diapers. To accommodate growing demand and verify our advanced technology, the new SAP plant in Himeji is currently under construction, which was already announced last year and is scheduled to be completed in June 2016 with a capacity of 50,000 T/Y.
NIPPON SHOKUBAI has studied bigger expansion overseas applying the technology innovation in Himeji, based on the long term business plan, called “Reborn NIPPON SHOKUBAI 2020” and has decided on 11th May 2015 the investment of SAP and AA at NSE.
In Europe, NIPPON SHOKUBAI expects the steady demand of SAP especially in Central and Eastern Europe. NIPPON SHOKUBAI will ensure more stable supply after the investment of not only SAP but also its main raw material, AA.
With this new plant at NSE, NIPPON SHOKUBAI group’s global SAP production capacity will be 710,000 T/Y (Japan 370,000T/Y and overseas 340,000T/Y) and NIPPON SHOKUBAI will enhance its position as one of the world top suppliers of SAP. (ref.) AA production capacity after completion of the said expansion : 880,000T/Y (Japan 540,000T/Y and overseas 340,000T/Y)

2. Feature of investment
Production capacity : SAP 100,000 T/Y (expansion)
           (current capacity 60,000 T/Y, totally 160,000 T/Y after completion)
            AA 100,000 T/Y (new)
Schedule: Mechanical completion - October 2017
     Commercial operation - May 2018
Location: Existing plant site of NSE (industrial site of INEOS Oxide)
Investment amount: Approx. 350 million EURO

3. Corporate outline of NSE
Location : Antwerp, Belgium (headquarter and plant)
President : Hidetaka YATAGAI Established : February 1999
Capital : 43 million EURO - paid in capital
wholly owned by NIPPON SHOKUBAI
Business : Production and sales of SAP
Number of employees: 95 as of December 31,2014

4.Influence on the business results
This project makes no influence on the business results of the current fiscal year ending on March 31, 2016. As for the business results in future, after the operation on Y2018, NIPPON SHOKUBAI will maintain and improve profitability by utilizing the above mentioned new plants effectively.

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