August, 2007

Sumitomo Chemical Announces Expansion of its Polypropylene Compounds Business in North
America and Europe
Sumitomo Chemical will establish new manufacturing and marketing operations in both North
America and Europe for polypropylene (PP) compounds used in automobile bumpers and othercomponents as part of the global strategy of its polypropylene business.
Sumitomo Chemical positions its PP business as one of its core petrochemical businesses and has
long been actively promoting its global development. With manufacturing facilities in Chiba, Japan;
Singapore; Texas, USA; and a plant in Rabigh, Saudi Arabia scheduled to come on-stream in thelatter half of 2008, the Company operates four worldwide production bases capable of supplying anannual 2 million tons of PP using its proprietary technologies.
These global PP supply capabilities give Sumitomo Chemical distinct advantages in strategic
development of downstream PP compounds, including outstanding capabilities in product design,
cost competitiveness and stable supply. Taking maximum advantage of these strengths, Sumitomo
Chemical will consolidate its position as a global player in the world’s major markets for PP
compounds. Last year, the Company established Zhuhai Sumika Polymer Compounds Co., Ltd. inChina and began operation of a new plant with an annual production capacity of 10 thousand tonsof PP compounds, and is studying plans for further expansion. With global demand for PP and PP
compounds increasing, Sumitomo Chemical has decided to establish new bases of operation in thetwo major automobile producing regions of North America and Europe.
In North America, Sumitomo Chemical has for many years operated its business in PP and PP
compounds through Phillips Sumika Polypropylene Company, a joint venture with Chevron Phillips
Chemical Co. LLC, and is also expanding its sales volume of PP compounds through toll
manufacture. Under the current plan, a new joint venture will be established between Sumitomo
Chemical and the Toyo Ink Group, and the new company will construct a new PP compound plant tofurther expand the business in North America with higher quality and more cost-competitive
products.
Sumitomo Chemical’s PP and PP compounds business operations in Europe, however, have beenrather limited until now. Following a series of studies on the best ways to expand the business,
Sumitomo Chemical has entered into an agreement together with the Itochu Group and Toyo Ink
Group to acquire the PP compound operations run by Asahi Kasei Chemicals and Planesa S.A. inthe UK and France. The businesses targeted by this acquisition serve a broad spectrum of theautomotive and home appliance industries in Europe. Leveraging its global PP supply capabilities
and advanced technologies accumulated over many years, Sumitomo Chemical seeks to actively
strengthen this existing business as well as both further the development of its compounds businessand increase the value-added of its products.
This expansion will enable Sumitomo Chemical to enhance its global PP compound supply
capabilities to meet the needs of its customers as they expand their businesses worldwide. TheCompany will continue actively to expand, strengthen and add value to its business in PP and PPcompounds.

Overview of New Businesses
１．Overview of North American company:
・Name:

Sumika Polymer Compounds America Inc.

・Headquarters:

A suburb of Atlanta, Georgia, USA・Business:

Manufacture and sale of PP compounds

・Shareholding ratio:

Sumitomo Chemical 55%; Toyo Ink International 45%

・Founded:

September 2007 (planned)

・President:

TBA (Sumitomo Chemical appointee planned)

・Production capacity:

26 thousand tons/yr. of PP compounds

・Number of employees:

Approx. 50 persons

・Start of operations:

Early 2009 (planned)

２．Overview of European business acquisition:
・Name:(Current name)
AK&N(UK) Limited(Planned new name)
Sumika Polymer Compounds Europe Limited

・ Headquarters:

Havant, England (suburb of Portsmouth, England)

・ Main offices:

England (Havant), France (Arles)

・ Business:

Manufacture & sale of resin compounds, mainly PP・ Shareholding ratio:(Prior to acquisition) Asahi Kasei Chemicals 65%; Planesa S.A. 35%(After acquisition) Sumitomo Chemical 50%; Itochu Group 25%; Toyo Ink Group 25%
・ President:

TBA (Sumitomo Chemical appointee planned)

・ Production capacity:

UK 40 thousand tons/yr., France 20 thousand tons/yr.
(total 60 thousand tons/yr.)・ Number of employees:

Approx. 165 persons

・ Sales

Approx. ¥11 billion/yr.