Promoting the creation and expansion of new environmental businesses as a key management issue, Kuraray Co., Ltd. (President: Fumio Ito; Headquarters: Chiyoda-ku, Tokyo; hereafter "Kuraray") has agreed to establish a joint venture with a local Chinese company to undertake the full-scale development of the Aqua Business in China.

Kuraray will implement full-scale business development through the new joint venture in order to meet demand for advanced water treatment technology in China. Based on this and other initiatives, Kuraray aims to achieve sales of over ¥50 billion in its Groupwide Aqua Business by 2015.

Name of Joint Venture Partner (please refer to Overview of Joint Venture Partner listed below)

Zhejiang Hexin Industry Group Co. Ltd., (hereafter "Hexin")
Kuraray and Hexin previously established a joint venture that produces and sells man-made leather in China.

Overview of Joint Venture

Company name Kuraray Hexin Environmental Technology (Jiaxing)Co., Ltd.
Capital US$6.5 million (scheduled) (Equity ratio: Kuraray 51%; Hexin 49%)
Business activities Sale of microorganism immobilization biocarriers and hollow fiber membranes; design and manufacture of industrial water treatment equipment and plants using the above listed materials; manufacture and sale of equipment(*) for the recycle of coolants, silicon and other materials
  • * Used for silicon wafer production process in photovoltaic industry
Location Jiaxing City, Zhejiang Province, China (scheduled)

Reference: Overview of Joint Venture Partner

Company name Zhejiang Hexin Industry Group Co., Ltd.
Principal businesses Manufacture and sales of man-made leather (the largest company in the Chinese man-made leather industry)
Location 435 Chengdong Road, Jiaxing City, Zhejiang Province, China
Date established 1988 (began as a state-owned company, was fully privatized in 1998 and was listed on the Shenzhen Stock Exchange in 2009)
Representative YunPing Shen, Chairman and President
Capital Approximately ¥1.2 billion
Number of employees Approximately 1,600
Sales Approximately ¥21 billion (consolidated fiscal year ended December 31, 2010)