GE, Mitsui Chemicals and Nagase Reach Agreement on their Japan Joint Ventures
GE, Mitsui Chemicals, Inc. (MCI) and Nagase & Co., Ltd. announced that they have reached the following agreement regarding their Japanese joint ventures GE plastics Japan Ltd. (GEPJ) and GEM PC Ltd. (GEMPC).
GE has acquired the entire equity interests of MCI and Nagase in GEPJ thereby increasing its equity to 100%. Except for the closing of GEPJ's Chiba Facility located within MCI's Ichihara Works, there will be no change in GEPJ's operations and GEPJ will continue to serve the GE Plastics' Japan customer base as it has in the past. Nagase will continue to serve the GE Plastics' customers in Greater China and SEA as a sales representative and distributor.
GE has acquired the entire equity interests of Nagase in GEMPC thereby increasing its equity to 58%. GEMPC will continue to produce Lexan resins as a joint venture between GE and MCI until March 31, 2008. GEMPC will then cease business operations and will be liquidated. GEPJ will supply Lexan polycarbonate from other GE Plastics' polycarbonate manufacturing facilities located globally.
GE has agreed to sell its Plastics business to SABIC (Saudi Basic Industries Corporation), at which the new business will be renamed to SABIC Innovative Plastics. The sale is targeted to close in the third quarter.
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