UNITIKA, Shin-Etsu Chemical to integrate their vinyl acetate monomer and Poval business
Decision is expected to strengthen competitive power in fast-changing business environment
(2002.3.5)
| UNITIKA Ltd. (Chuo-Ku, Osaka) and Shin-Etsu Chemical Co., Ltd. (Chiyoda-Ku, Tokyo) have been jointly engaged in the vinyl acetate monomer/Poval business. To strengthen their competitiveness in this business field, the two companies have decided to integrate the sales departments of both UNITIKA and Shin-Etsu Chemical and two subsidiary production companies involved in this business (Shin-Etsu Vinyl Acetate Co., Ltd. and UNITIKA Chemical Company, both located in Sakai City, Osaka). The new integrated company, JAPAN VAM & Poval Co., Ltd., will start operations from May 1, 2002 with a capital of 2 billion yen. |
| This business integration agreement resulted from a desire to strengthen the synergetic effects of the collaboration in this business field of UNITIKA Ltd. and Shin-Etsu Chemical Co., Ltd., and JAPAN VAM & Poval Co., Ltd. will aim to solidify a position as a top-level company in the vinyl acetate monomer and Poval business. |
Since 1968, UNITIKA Ltd. and Shin-Etsu Chemical Co., Ltd. have operated under a system in which the sales of each company and production and sales of the two subsidiary production companies were independently run from four different departments. However, in consideration of the recent rapidly changing economic environment, the two companies decided to execute complete integration of production technology power, development power and sales power to further strengthen the profitability of this business.
(VAM: Vinyl Acetate Monomer) |
Outline of the new integrated company |
| Company name |
JAPAN VAM&POVAL CO., LTD. |
| Head Office, Plant Location |
Sakai City, Osaka |
| Capital |
2 billion yen |
| Shareholders |
50% UNITIKA Ltd., 50% Shin-Etsu Chemical Co., Ltd. |
| Business |
Manufacturing and sales of vinyl esters of carboxylic acids, such as vinyl acetate monomer and polyvinyl alcohol. |
| CEOs (scheduled) |
Hirokazu Okamoto
(present position: President of Shin-Etsu Vinyl Acetate Co., Ltd.)
Shigekazu Toyonishi
(present position: Executive Officer and General Manager Poval & Vinylon, UNITIKA Ltd.) |
| Staff |
About 170 employees |
| Annual sales |
About 10 billion yen (forecast for the fiscal year 2001) |
| Capacity |
vinyl acetate monomer 120,000 tons/year, Poval 40,000 tons/year |
|
| (This integration agreement was announced at the Osaka Textile Press Conference on Feb. 25, 2002.). |
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