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Showa Denko (SDK) Establishes Graphite Electrode Subsidiary in China

Tokyo, Mar 26, 2013 - (JCN Newswire) - Showa Denko K.K. (SDK) has completed its procedure for acquiring a controlling stake in Sinosteel Sichuan Carbon Co., Ltd. (Sichuan Carbon), an integrated manufacturer of graphite electrodes in China. Following the ratification by related government organizations on March 18, SDK made Sichuan Carbon its subsidiary, renaming the company as Showa Denko Sichuan Carbon Inc. (Showa Denko Sichuan Carbon).

SDK will introduce its graphite electrode manufacturing technology into Showa Denko Sichuan Carbon to improve product quality, and serve the growing markets in China and other Asian countries.

Graphite electrodes are used for electric steelmaking, which melts iron scrap for recycling. Electric steelmaking is expected to grow due to its environment-friendly features of iron resource recycling, and lower CO2 emissions compared with blast-furnace steelmaking. The growth of electric steelmaking will also be supported by the increase in supply of iron scrap in emerging economies in Asia and other regions, following the proliferation of cars and the progress in urban development.

SDK has so far been supplying high-quality graphite electrodes mainly to the markets in advanced countries, from its Omachi Plant in Nagano Prefecture, Japan, and Showa Denko Carbon, Inc. (SDKC) located in South Carolina, U.S.A.

With the establishment of its Chinese subsidiary Showa Denko Sichuan Carbon, SDK is now ready to supply "volume-zone" products for emerging markets. Thus, SDK will steadily promote its strategy of "being active on two fronts," serving both the high-end and volume-zone product markets.
Outline of Showa Denko's graphite electrode operations

- Omachi Plant
Annual production capacity (in 2013):     60,000t/y
Annual production capacity (end 2014):    60,000t/y

- Showa Denko Carbon
Annual production capacity (in 2013):     45,000t/y
Annual production capacity (end 2014):    75,000t/y

- Showa Denko Sichuan Carbon
Annual production capacity (in 2013):     22,000t/y
Annual production capacity (end 2014):    22,000t/y

- Total -
Annual production capacity (in 2013):    127,000t/y
Annual production capacity (end 2014):   157,000t/y

Outline of Showa Denko Sichuan Carbon Inc.

Location:                 Guangyuan, Sichuan Province, China
Start of operation:       March 18, 2013
Capital:                  RMB 350 million
Shareholders:             Showa Denko K.K.:      67%
                          Sinosteel Corporation: 30%
                          Tokai Trade Co., Ltd.:  3%
Chairman:                 Yoshiharu Mizuno
Director & Gen. Manager:  Yoshiaki Yoshida
Scope of business:        Production and sale of graphite electrodes
Number of employees:      Approximately 400


About Showa Denko

Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods), electronic equipment (hard disks for computers) and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp .



Source: Showa Denko

Contact:
Showa Denko K.K. (SDK)
Public Relations Office
Tel: +81-3-5470-3235


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