Marubeni Chemicals (Shanghai) Co., Ltd. Established

Jun. 9. 2004
Marubeni Corporation

Marubeni Corporation (President and CEO: Nobuo Katsumata) has established Marubeni Chemicals (Shanghai) Co., Ltd. as a sales company for basic chemical and related products in China, with a 100% stake taken by the Marubeni Group. The new company will commence operations on August 1, 2004. The decision to establish a local company was made in light of the fact that China is likely to develop significantly into a major market for basic chemical products in Asia as chemical manufacturers of Japan and other countries continue to shift their manufacturing bases for core products to China. Moreover, we believe it is better to quickly establish a sales organization for basic chemical products that is dedicated to the Chinese market, to integrally manage sales activities in different parts of the country, as the Chinese domestic market is steadily moving towards an entirely open market following the country's entry into the World Trade Organization. The new company is to be incorporated in our global sales organization, which consists of sales companies in the United States, Europe and Asia (Singapore), making it possible to effectively include the Chinese market in our global strategies for chemical products. Also, our salespeople working with the new company will be able to employ higher levels of expertise for their sales activities geared toward existing customers in China, making it possible to consolidate the sales organization and improve services. The new company will operate as one of our most important overseas bases for chemical products, while endeavoring to expand domestic sales channels in China. The new company will initially focus its sales activities on Shanghai, and our business plans seek to gradually integrate and unify sales and production bases for basic chemical products in different parts of China. The company is expected achieve sales of about US1.2 billion dollars within three years.


Outline of the New Company

Company name  : Marubeni Chemicals (Shanghai) Co., Ltd.

Representative   : Shoji Kohno, President

Address              : 43rd Floor, HSBC TOWER, 101 Yin Cheng East Road,
                             Pudong New Area, Shanghai

Paid-in capital     : US2 million dollars

Investment ratios: Marubeni Corporation: 75%
                              Marubeni China Co., Ltd.: 20%
                              Marubeni Hong Kong & South China Ltd.,: 5%
Number of employees:   45 (of these, five are being dispatched from Japan)

Scope of business    : import and export, trading with other countries and          
                                  domestic sales in China of chemical and related products

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