Shin-Etsu Chemical to transfer its lime nitrogen fertilizer business to Co-op Chemical (2002.3.5)
| On February 25, Shin-Etsu Chemical Co., Ltd. (Head Office: Tokyo, President and CEO Chihiro Kanagawa) reached an agreement to transfer its fertilizer business to Co-op Chemical Co., Ltd. (Head Office: Tokyo, President, Eijo Okamoto) With the signing of this contract, Shin-Etsu Chemical is entirely pulling out of the fertilizer business, which had continued from the start of the company. |
| The business that will be transferred is chemical fertilizers such as lime nitrogen which Shin-Etsu Kasei Co.,Ltd. (Head Office: Tokyo, President, Hiroaki Tsubokura), a 100% Shin-Etsu-owned Group company, had been producing. The fertilizer business of Shin-Etsu Chemical has contributed to the company's development as a core business from the start of the company. However, as a part of management's strategy of "Selection and Concentration," due to the changes over time in the main pillars of Shin-Etsu Chemical's business structure, the decision was made to transfer this business. |
| Co-op Chemical is a long-established specialized fertilizer maker and is one of members of the National Federation of Agricultural Co-operative Associations, with a company history dating back to 1938. It is a major fertilizer maker which has in addition to its main high-level chemical synthesis technology, a very diverse range of products such as phosphorus fertilizers, slow release fertilizers, organic fertilizers, suspension fertilizers, and fertilizers with pesticide, etc. As a result of Co-op's development and marketing of new fertilizers that meet the needs of the market, they are strengthening their competitive power. In addition, this company utilizes its own unique technologies, to expand its business areas. |
| The agreement between Shin-Etsu Chemical and Co-op Chemical came about because with their respective business backgrounds this transfer agreement fit the matching needs of both companies. Moreover, in the sales area, by transferring the business to Co-op Chemical, which has a reputation for high reliability and a strong brand name in the fertilizer industry and market, the continuation of the lime nitrogen business will be carried out smoothly. Accordingly, supply responsibilities to users can be sufficiently met, and this was one of the major factors in the making of this transfer agreement. |
| Shin-Etsu Kasei, which was taking charge of the production of this fertilizer business, is to continue with its remaining businesses such as dissolved acetylene. Furthermore, as a result of this business transfer, there will be no staff relocations among both companies. |
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