Tokyo, Sept 25, 2008 - (JCN Newswire) - Showa Denko K.K. (SDK) has reached agreement with Asahi Glass Co., Ltd. (Asahi), Mitsubishi Corporation (Mitsubishi), and MITENI S.p.A. (MITENI) to purchase all the shares of their joint venture F2 Chemicals Limited (F2 Chemicals), of the United Kingdom.
Asahi, Mitsubishi, and Mitsubishi's Italian subsidiary MITENI are scheduled to transfer the F2 Chemicals shares to SDK on September 30.
F2 Chemicals, based in Preston, Lancashire , has sophisticated fluorine technologies, including electrolytic process for producing fluorine and cobalt-fluoride-based process for producing perfluorocarbons. The company also has a selective direct fluorination technology to replace any atom in a molecule of organic compounds with a fluorine atom by effectively controlling highly reactive fluorine gas.
SDK has so far expanded its operations in the area of IT chemicals, consisting of high-purity gases and photo-curing/thermo-setting resins for use in the production of semiconductors and displays. Demand for fluorine compounds, in particular, is expected to grow in the coming years for various applications, including the etching process for semiconductor production.
By combining F2 Chemicals' technologies with proprietary technologies, SDK will expand the lineup of fluorine compounds to further expand its IT chemicals business.
F2 Chemicals will retain its name after the acquisition. SDK will aggressively support F2 Chemicals in R&D and marketing of electronic materials, aiming to increase its annual sales by six times, to \4.5 billion in 2015. This acquisition will have only slight influence on SDK's consolidated business results for 2008.
[Profile of F2 Chemicals Limited]
Head office location: Preston, Lancashire, U.K.
Chairman: Takashizu Minato
Capital: 11,125,000 pound sterling
Shareholders: Asahi (51%); Mitsubishi (34%); MITENI (15%)
Scope of business: Production and sale of fluorine compounds, including perfluorocarbons
Annual sales for 2007: Approx. 3.7 million pound sterling (approx. \700 million)
Established in 1992
Employees: 33 (as of August 2008)
About Showa Denko
Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods), electronic equipment (hard disks for computers) and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp .
