09-07-2012

Idemitsu concludes basic agreement to establish a JV with Formosa Petrochemical

Idemitsu Kosan Co., Ltd and Formosa Petrochemical Corp. (hereinafter "FPCC") have concluded a basic agreement on the establishment of a joint-venture company to manufacture and sell hydrogenated hydrocarbon resin.

Hydrogenated hydrocarbon resin (trade name: I-MARV) is a colorless, transparent, odorless resin with outstanding thermostability and thermal resistance, used in applications such as tackifiers for hot melt adhesives used in disposal diapers and polyolefin resin modifiers. Recent years have seen expectations for massive growth in demand for its use in sanitary products such as disposal diapers as populations grow and standards of living rise in emerging countries.

Since 1994 Idemitsu Kosan has produced hydrogenated hydrocarbon resin using its own unique technologies at the Tokuyama Plant (manufacturing scale: 10,000 metric tons/year). However, in light of expectations for growth in the hydrogenated hydrocarbon resin business in response to growing demand in emerging countries, it has concluded with Taiwan FPCC a basic agreement and memorandum of understanding on establishment of a joint-venture company to strengthen manufacturing and sales.

Taiwan FPCC, a member of the Formosa Plastics Group (FPG), is engaged in petroleum refining and manufacture and sale of petroleum products. It also has advantages in areas such as the ability to provide a stable supply of raw materials for hydrogenated hydrocarbon resin and its location in an area experiencing growing demand.

Plans call for finalizing detailed terms in the future, aiming to establish the joint-venture company in the second half of fiscal 2012 and to complete installation of equipment in fiscal 2014.