March 31, 2009

Announcing the Integration of Our Chinese (Shanghai) Affiliated Companies
- Reinforcing our customer response system for Chinese businesses -

Nippon Polyurethane Industry Co., Ltd. is pleased to announce the integration from March 31, 2009 of its Chinese manufacturer and distributor, Nippon Polyurethane (Shanghai) Co., Ltd. with its Chinese research and development center, Nippon Polyurethane R&D (Shanghai) Co., Ltd. The two companies, wholly-owned by Nippon Polyurethane Industry Co., Ltd., will be integrated following application for their integration and merger and receipt of the appropriate business license.

This integration in China is designed to unify the company’s research, manufacture, and distribution, and to help establish a system for responding to customers’ support needs more quickly through closer relations with the local area. Following the integration, the new company will be known as Nippon Polyurethane (Shanghai) Co., Ltd.

Nippon Polyurethane Industry Co., Ltd. founded Nippon Polyurethane R&D (Shanghai) Co., Ltd. in 2001 to establish a system for effective research and development and to provide technical services through closer relations with the company’s Chinese customers. Nippon Polyurethane (Shanghai) Co., Ltd. was then founded in 2003 with the aim of providing faster customer response services through local manufacturing.

With its rapid economic growth, China serves as a global manufacturing base for various industries and has matured sufficiently to respond to a great variety of emerging customer needs. In the urethane industry there has been massive growth in demand in the automotive and construction industries, following on from shoes, textiles, furniture, home electric appliances and other fields. And such demand covers a wide gamut, including environmental response and advanced performance.

In response to such changes, the company is determined to use its unification of manufacturing, distribution and research to establish a system that will enable it to increase the speed of development, improve technical services to customers, and respond quickly to a variety of customer needs.

In addition, Nippon Polyurethane Industry Co., Ltd. has started using another of its companies, Nippon Polyurethane (Ruian) Co., Ltd., in the Ruian Economic Development Zone in Zhejiang as a manufacturing base for its MDI splitter (the refining separation unit for the MDI precursor), providing an annual production capacity of 50,000 tons. The company also has plans to build further operating bases to provide a stable supply of high-value added products in the future.

Overview of the integrated Nippon Polyurethane (Shanghai) Co., Ltd.

1. Name of the company:	Nippon Polyurethane (Shanghai) Co., Ltd.
2. Day of integration:	March 31, 2009
3. Capital:	Four hundred sixty seven million yen (\467,000,000)
4. Location:	330-1&2, Rongbei Road, Zhongshan Street, Songjiang District, Shanghai,
5. Chairman:	Haruroh Shimoda (Managing Executive Officer, Nippon Polyurethane Industry Co., Ltd.)
6. Business details:	Research and development, manufacturing, and distribution of polyurethane products including system materials, paint, adhesive materials, and other items for polyurethane foams

For further details, please contact:

Corporate Planning Department, Nippon Polyurethane Industry Co., Ltd. Tel. 81-3-5439-8601

Shanghai Office, Nippon Polyurethane Industry Co., Ltd. Tel. 86-21-6278-7688

 

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