Information of Business Cooperation on Agricultural Film

C.I. Kasei Co., Ltd. (Head Office: Chuo-ku, Tokyo, President: Motonari Toyota) and Chisso Corporation (Head Office: Chuo-ku, Tokyo, President: Shunichi Okada) have discussed about materialization of comprehensive business cooperation relating to agricultural film business. We would like inform that they have reached and entered into recently an agreement in the details.

Hence, both companies will execute various measures based on the agreement.

1. Purpose of Business Cooperation

In market of agricultural film (Nohbi), trend of grades are diversified and orders received are miniaturized and decentralized, and circumstances of the business is changing rapidly.

Reform of profit structure and improvement of operation efficiency in increasingly intense competition under such circumstances are urgently needed, accordingly both companies have intended to realize them through the business cooperation.

Through this business cooperation, strengthening of cost competitiveness, fulfillment of merchandise assortment and development in various fields including research and development are expected including Taffnick Co., Ltd. established as an affiliate of C.I. Kasei Co., Ltd. on October 2002. Accordingly, the two companies will aim at stability of operating foundations and enhancement of agricultural film business.

Additionally by including Taffnick Co., Ltd., Nohbi produced by extrusion method is added to the lineup, diversifying demands of customers will be satisfied. Moreover, in C.I. Kasei Co., Ltd., expansion of agricultural polyolefin film (Agri PO) has been decided and stable supply system will be further strengthened.

2. Contents of Business Cooperation
• (1) Cooperation regarding enhancement of production efficiency
• (2) Consolidation of logistics bases and joint delivery
• (3) Joint purchasing of materials
• (4) Mutual usage of respective production facilities and contract producers
• (5) Technology exchange and joint research
• (6) Mutual sales of respective relating goods
3. Production Capacities
   • (1) C.I. Kasei Co., Ltd. (including Taffnick Co., Ltd.)
     1. Nohbi
        Calendar process : 17,300 ton
        Extrusion process : 6,000 ton
     2. Agri PO
        Inflation process : 7,000 ton
   • (2) Chisso Corporation
     1. Nohbi
        Calendar process : 9,700 ton