Mitsubishi Gas Chemical Company, Inc.
May 28, 2009

MGC establishes new subsidiary in China

Mitsubishi Gas Chemical Company, Inc. (“MGC”) today announced its decision to establish
a new subsidiary in China.
1. Purpose of subsidiary
MGC has decided to establish a subsidiary in the Shanghai Chemical Industry Park in thesuburbs of Shanghai, China. The new company will operate as a comprehensive
polycarbonate (“PC”) business, engaging in neat resin and compounds production as wellas the provision of technical solutions. It is planned that Mitsubishi Engineering-Plastics
Corporation (“MEP”) will participate as an investor in the new subsidiary.
An interface-method PC production facility, forming the core operation of the new subsidiary,is scheduled to begin commercial production in April 2012 at an annual production capacityof 80,000 tons, with a capacity increase to 100,000 tons planned for a later stage. In
anticipation of the start of production a technical center will begin operating in August 2011.
All of the PC produced by the new subsidiary will be sold through MEP under the Iupilon®
brand.
MGC’s new medium-term management plan, which took effect in April 2009, positions thePC business as a core business area of growth and competitive advantage. By establishinga centralized base for MGC’s PC business in China, the principal source of current PC
demand, and by aggressively developing the interface method PC brand Iupilon® MGC
aims to strengthen the Iupilon® brand and thereby reinforce and expand its PC business.

2. Outline of subsidiary
Company name:

LingYou Engineering-Plastics (Shanghai) Co., Ltd.

President:

To be confirmed

Location:

Shanghai Chemical Industry Park, Shanghai, China

Date of establishment (planned): July 2009
Business:

PC neat resin and PC compound production, technicalsolutions provision

Main facilities:

PC resin production facility (interface method, 80,000 tonannual capacity)
Pelletizing facility (60,000 ton annual capacity)
Compound facility (28,000 ton annual capacity)
Technical center

Start of production (planned):

April 2012 (Technical center to begin operations in August2011)

Employees:

Approximately 260

Capital:Approximately ¥10 billion

Investment ratio (planned)

Mitsubishi Gas Chemical Company, Inc.: 80%:

Mitsubishi Engineering-Plastics Corporation: 20%

Paid-in capital:

Approximately ¥30 billion

3. Effect on results in fiscal year under review
The establishment of this subsidiary is not expected to have a material effect on thenon-consolidated financial results of MGC in the fiscal year ending March 31, 2010. It isplanned that the subsidiary will become a consolidated subsidiary of MGC, but the schedule
for this has yet to be decided.

Reference:
PC:PC (polycarbonate) is a high performance resin with superior transparency, shock
resistance and dimensional stability that is used in a wide range of applications including
electrical appliances, electronic devices, computers, office equipment and automobiles,construction materials and household accessories. Annual global production exceeds three
million tons, of which the Chinese market accounts for more than one third. Global demandis expected to grow at an annual rate of 6% and above, and, given the projected economic
growth in China in particular, is expected to produce growth of 9% and above, mainly in highvalue added products.
Iupilon®
PC production techniques may be broadly classified into two methods, the interface method
and the melting method. Although each has its associated advantages and disadvantages,
interface method PC is in general compatible with the full range of applications fromgeneral-purpose to high value added products.
Iupilon® is MGC’s PC brand, of which it produces 290,000 tons annually using proprietary
technology. MGC produces Iupilon® at its Kashima plant (Kamisu, Ibaraki Prefecture) andthrough Thai Polycarbonate Co., Ltd., which it sells through MEP for use mainly in highvalue added applications such as electrical appliances, electronic devices, computers, officeequipment, and automobiles.
Outline of MEP
Company name:

Mitsubishi Engineering-Plastics Corporation

President:

Kijima Yasuhiko

Location:

Chuo-ku, Tokyo

Paid-in capital:¥3 billion

Investment ratio

Mitsubishi Gas Chemical Company, Inc.: 50%
Mitsubishi Chemical Corporation: 50%

Business:

Sale of engineering plastics, production and sale of compounds,
development of applied technology

For further information please contact:
Mitsubishi Gas Chemical Company, Inc.
TEL: 03-3283-5041 (Corporate Communications Division)
Mitsubishi Engineering-Plastics Corporation
TEL: 03-3278-5800