Mitsui Chemicals

Expansion of Automotive Use Polypropylene Production
Production Augmentation in the United States, Mexico, and China Establishment of a New Company in Brazil

May 14, 2012
Mitsui Chemicals, Inc.
Prime Polymer Co., Ltd.

Mitsui Chemicals, Inc. (Toshikazu Tanaka, President & CEO) and Prime Polymer Co., Ltd. (Yasuhiko Ohtawa, President) announced production augmentation at the Group's three strategic sites for automotive use polypropylene (PP) in the United States, Mexico, and China to meet growing global demands for the material. Additionally, the Group will establish a new company for PP compound business in Brazil to strengthen its operations in the South American market.

The Mitsui Chemicals Group has production sites in seven of the major world markets (Japan, United States, Europe, Thailand, China, and India) for automotive use PP and targets strengthening and expanding its production operations. The planned production augmentation at the three strategic sites and the establishment of a new company will further strengthen the Group's current world top class position.

The Group will continue to strategically intensify and expand operations through ongoing collaboration and reinforcement of production, sales, and technological support structures to actively strengthen and expand business operations.

Outline of Production Augmentation and New Company

1. United States

・28,000 ton production augmentation from new line (tentative commercial operation 3Q 2013)

Name Production Capacity(t/y)
Now Increase Post-Augmentation
Advanced Composites Inc. 226 28 254

2. Mexico

・25,000 ton production augmentation from new line (tentative commercial operation 4Q 2013)

Name Production Capacity(t/y)
Now Increase Post-Augmentation
Advanced Composites Mexicana S.A. de C.V 45 25 70

3. China

・10,000 ton production augmentation from new line (tentative commercial operation 4Q 2013)

Name Production Capacity(t/y)
Now Increase Post-Augmentation
Mitsui Advanced Composites (Zhongshan) Co., Ltd 60 10 70

4. Brazil

・Establishment of new company through acquisition of equity interest in a local compound company.
(Please refer to Prime Polymer news release of May 14, 2012)

Name Production Capacity(t/y)
Now Increase Post-establishment
Produmaster Advanced Composites Indústria e Comércio de Compostos Plásticos Ltda. - - 55

Attachment

1. Overview of Advanced Composites, Inc.

(1) Established: June 1986
(2) Capital: US$14.1 million
(3) Equity Interest: Mitsui Chemicals America, Inc. (59.8%), Prime Polymer Co., Ltd. (3.0%), and others (37.2%)
(4) Head Office: Ohio, U.S.A.
(5) Production Facilities: Ohio and Tennessee

2. Overview of Advanced Composites Mexicana S.A. DE C.V.

(1) Established: February 1994
(2) Capital: US$2.6 million
(3) Equity Interest: Advanced Composites, Inc. (100%)
(4) Head Office & Production Facilities: Aguascalientes, Mexico

3. Overview of Mitsui Advanced Composites (Zhongshan) Co., Ltd

(1) Established: April 2004
(2) Capital: US$15.3 million
(3) Equity Interest: Mitsui Chemicals, Inc. 50%, Prime Polymer Co., Ltd. 20%, and others (30%)
(4) Head Office & Production Facilities: Guangdong Province, China

4. Overview of Produmaster Advanced Composites Indústria e Comércio de Compostos Plásticos Ltda.

(1) Established: May 2012
(2) Capital: BRL1.2 million
(3) Equity Interest: Prime Polymer Co., Ltd. (70%), Vicente Eudes de Freitas(30%)
(4) Head Office & Production Facilities: São Paulo - SP - Brasil

Attachment

Expansion of Automotive Use Polypropylene Production (PDF:152KB)PDF