Joint venture agreement for consolidation of fertilizer operations

 

Chisso (Head office, Tokyo; President, Shun'ichi Okada), Asahi Kasei Chemicals (Head office, Tokyo; President, Masaki Sakamoto), and Mitsubishi Chemical (Head office, Tokyo; President, Yoshimitsu Kobayashi) have reached accord regarding a consolidation of the fertilizer businesses operated by their affiliates Chisso-Asahi Fertilizer Co., Ltd. (Head office, Tokyo; President, Takeshi Sato) and Mitsubishi Chemical Agri, Inc. (Head office, Tokyo; President, Seiichiro Yoshimoto), and have concluded a joint venture agreement for this purpose.  The agreement provides for JCAM Agri Co., Ltd. to begin operation on October 1, 2009, as a new joint venture for fertilizer operations.

 

Both Chisso-Asahi Fertilizer and Mitsubishi Chemical Agri produce a wide range of fertilizer products such as compound mineral fertilizers throughout Japan, and proactively develop specialized products which meet the various needs of the farming community.  The consolidation of operations will enable significant synergies, with effective utilization of the two companies` production bases and a streamlining of the sales networks, logistical systems, and R&D functions.

 

Moving forward, JCAM Agri will strengthen its operational base to enhance stable supply to customers, continuing to contribute to the development and growth of agriculture in Japan.

 

 

Corporate profile of the new joint venture

Name:	JCAM Agri Co., Ltd
President:	Takeshi Sato (currently President of Chisso-Asahi Fertilizer)
Head office:	Tokyo
Paid-in capital:	1.8 billion YEN
Shareholding:	Chisso Group – 42.25%,
	Asahi Kasei Chemicals – 22.75%,
	Mitsubishi Chemical Group – 35.00%
Number of Board Directors:	5 from Chisso, 2 from Asahi Kasei Chemicals, 3 from Mitsubishi Chemical

 

 

Corporate profile of current fertilizer affiliates*

Name:	Chisso-Asahi Fertilizer Co., Ltd.	Mitsubishi Chemical Agri, Inc.
President:	Takeshi Sato	Seiichiro Yoshimoto
Head office:	Tokyo	Tokyo
Establishment:	July 1, 1969	April 1, 2002
Business line:	Production and sale of fertilizer	Production and sale of fertilizer
Sales:	22.9 billion YEN	30.0 billion YEN
Employees:	244	91
Plants:	Fuji, Minamata, Tobata	Kurosaki, Onahama, Mizushima
Laboratory:	Fuji	Kurosaki
Sales branches:	Tokyo, Sapporo, Sendai, Fuji, Nagoya, Osaka, Fukuoka, Kumamoto	Tokyo, Fukushima, Osaka, Nagoya, Fukuoka
Paid-in capital:	305 million YEN	1,500 million YEN
Shareholders:	Chisso Group – 65% Asahi Kasei Chemicals – 35%	Mitsubishi Chemical – 95.3% Nippon Kasei Chemical Co., Ltd. – 4.7%

* As of March 31, 2009.