(Note) This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
December 22, 2021 Company name: Tokuyama Corporation Representative: Hiroshi Yokota, President and Representative Director (Code No. 4043, First Section TSE) Contact: Tetsuya Nakano, Manager
Corporate Communications & Investor Relations Dept. TEL: +81-3-5207-2552
Notice Concerning Establishment of Joint Venture (Subsidiary)
Tokuyama Corporation (hereinafter referred to as "the Company" or "Tokuyama") hereby announces that, at a Board of Directors' meeting held on December 22, 2021, the decision was taken to establish a joint venture in Korea with SK Geo Centric Co., Ltd. (hereinafter referred to as "SKGC") for the purpose of manufacturing and selling high-purity isopropyl alcohol (IPA) for the electronics industry.
1. Purpose of Joint Venture Establishment
Due to the advances made in 5G, IoT, AI, DX and other technologies, the semiconductor market is expected to continue expanding over the medium to long term. As a result, demand for high-purity IPA used in the semiconductor manufacturing process is forecast to gradually increase. In addition, with the progress being made in the miniaturization of semiconductor devices, customer demands for higher quality and stable supply are ever increasing.
Manufactured by a unique, direct hydration method that features low concentrations of impurities, Tokuyama has to date marketed high-purity IPA, mainly in Japan, Taiwan, China and Southeast Asia. In this manner, the Company has maintained an unwavering commitment toward improving its technology in a bid to meet customer needs.
With the establishment of this joint venture, Tokuyama will build an integrated production system in Korea that extends from propylene, the raw material produced by SKGC, to high-purity IPA. By combining its strengths in high-purity IPA manufacturing technology and quality control capabilities with SKGC's strong presence in Korea, the Company will establish a new production and sales system to meet the needs of Korean customers.
This initiative is part of the Company's efforts to transform its portfolio, a cornerstone of the Medium-Term Management Plan 2025. and will contribute to the growth of the electronics field, which is positioned as a growth business.
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2. Outline of Joint Venture
(1) | Name | STAC Co., Ltd. | |||
(2) | Location | Ulsan City, Korea | |||
(3) | Name and Title of | Yet to be decided | |||
Representative | |||||
(4) | Business | Production and sale of high-purity IPA | |||
(5) | Capital | 60 million US dollars (Equivalent) | |||
(6) | Date of Establishment | July 2022 (Planed) | |||
(7) | Major Shareholder and | Tokuyama Corporation | 50% | ||
Ratio of Shareholding | SK Geo Centric Co., Ltd. | 50% | |||
3. Outline of Joint Venture Partner | |||||
(1) | Name | SK Geo Centric Co., Ltd. | |||
(2) | Location | 26, Jong-ro,Jongno-Gu, Seoul 03188, Korea | |||
(3) | Name and Title of | President & CEO | Na, Kyung-soo | ||
Representative | |||||
(4) | Business | Petrochemical company | |||
(5) | Capital | 2,851,449 million Korean won | |||
(6) | Date of Establishment | January 1, 2011 | |||
(7) | Major Shareholders and | SK Innovation Co., Ltd. | 100.00% | ||
Ratios of Shareholdings | |||||
(8) | Relationships between | Capital | Tokuyama and the relevant company have no | ||
the Parties | Relationship | significant capital relationship. | |||
Personnel | Tokuyama and the relevant company have no | ||||
Relationship | significant personnel relationship. | ||||
Transaction | Tokuyama and the relevant company have no | ||||
Relationship | significant transaction relationship. | ||||
Status as a | The relevant company does not belong to Tokuyama's | ||||
Related Party | related parties. | ||||
4. Timetable
(1) | Board of Directors' resolution date | December 22, | 2021 |
(2) | Joint venture agreement date | December 28, | 2021 (Planned) |
(3) | Business launch date | July 2024 (Planned) | |
5. Impact on Business Performance
The impact of the establishment of this joint venture on the consolidated full-year earnings forecast for the fiscal year ending March 31, 2022, will be minor, but the Company will promptly give notice if the earnings forecast is revised.
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Tokuyama Corporation published this content on 22 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 December 2021 07:12:07 UTC.