August 11, 1997

Production of Vinyl Chloride Resin at Tokushima Factory Terminated

Toagosei has already started planning to enter into a manufacturing tie-up with Mitsubishi Chemical Corporation, in which it will cooperatively expand and strengthen its manufacturing facilities. The aim of this move is to rationalize production and reduce physical distribution costs in order to strengthen the vinyl chloride resin business. We planned to terminate the vinyl chloride plant (capacity 20,000 ton / year) in our Tokushima factory by the end of 1997 because manufacturing performance is inefficient. However, because of the recent sudden rise in material prices (EDC, VCM), the vinyl chloride business has became significantly unprofitable. Therefore, we have decided to terminate the plant as soon as August this year before its regular maintenance inspection, thereby bringing forward our former plan by six months. After the plant in the Tokushima factory is terminated, we will work to ensure stable supply through manufacturing cooperation with Mitsubishi Chemical Corporation (Mizushima, Yokkaichi City).
This decision promises to help strengthen our infrastructure in the vinyl chloride business.