November 27, 2013
Sumitomo Chemical to Acquire Entire Stake in Nihon Oxirane and to Cease Operationof Nihon Oxirane in 2015
Sumitomo Chemical announced today that it has reached an agreement with Lyondell
Centennial Corp. (LyondellBasell) on the transfer to Sumitomo Chemical of
LyondellBasell’s entire equity holding in Nihon Oxirane Co. (NOC), a joint venture
between the two companies currently owned 40% by LyondellBasell and 60% by
Sumitomo Chemical. Upon the completion of equity transfer in December this year,
NOC will become a wholly owned subsidiary of Sumitomo Chemical.
The Company also announced its decision to discontinue NOC’s manufacture and sale ofstyrene monomer (SM), propylene oxide (PO) and propylene glycol (PG) by the end ofMay 2015.
Over recent years, Japan's petrochemical industry has constantly been faced with thedifficult business environment due mainly to a decline in domestic demand and thechanges in the supply-demand structure as a result of new constructions andexpansions of large-scale plants in China and the Middle East. To strengthen andsustain its petrochemical business under the circumstances, Sumitomo Chemical must
further step up its efforts of accelerating business structural improvements.
As announced in February this year, Sumitomo Chemical has decided to close down anethylene plant at its Chiba Works in 2015 when the next periodic shutdown
maintenance takes place, as part of its endeavor to reinforce the competitiveness of its
petrochemical operation at the Chiba Works, the Company’s stronghold for
petrochemical business in Japan. Following the decision, Sumitomo Chemical has been
looking into concrete measures to optimize production facilities, including possibilitiesof plant closure for some of the derivatives. As a result, given the business conditions
expected to grow increasingly severe, the Company has judged it necessary forstrengthened operation of its petrochemical business to cease production and sale of SM,
PO and PG at NOC, timed to coincide with the closure of the ethylene plant in Chiba.
After NOC ceases to produce and sell the three products, Sumitomo Chemical will
engage in continued sale of PO by manufacturing the product at its PO-only process
plant in Chiba, which excels in cost competitiveness and has achieved significantlyreduced environmental impact.

Sumitomo Chemical will strive to enhance profitability of its petrochemical business byestablishing an optimum business structure encompassing production, sale andresearch, capable of responding properly to changing demand in the marketplace athome and abroad.
(Outline of Nihon Oxirane Co.)
Head Office: 14-1, Kyobashi 2-chome, Chuo-ku, Tokyo
Chiba Operations: Kitasode 2, Sodegaura City, Chiba, Japan
Company Representative: Mikio Takagi, President and Representative Director
Incorporation: August 1972
Capital: 8.4 billion yen (as of October 31, 2013)
Number of Employees: 80 (as of October 31, 2013)
Business: Production and sale of styrene monomer, propylene oxide and propylene
glycolShareholdings: Sumitomo Chemical 60％, Lyondell Centennial 40％
Annual production capacity:
Styrene monomer 425,000 tons
Propylene oxide 181,000 tons
Propylene glycol 100,000 tons