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[December 2003]
SDK to Shift Ceramic Abrasive Grain Production to China
Showa Denko KK (SDK, Japan) will start producing ceramic abrasive grains in Lianyungang, Jiangsu Province, China in April 2004 through a joint venture with Mitsubishi Corporation.The new joint venture company - Lianyungang Zhaoling Abrasives Co Ltd - will produce white morundum(tm) (WA, a white fused alumina) and cubic boron nitride (CBN) grains that are currently being produced at SDK's plant in Shiojiri in Japan. Mitsubishi Corp will be responsible for comprehensive distribution services, including raw material imports into, and finished product exports out of China.
Shoko Co Ltd, a consolidated subsidiary of SDK engaged in general trading operations, is also investing in the new company. The new company will be provided with SDK technologies and guided by SDK in quality control and assurance. It will become an integrated producer covering all stages from receipt of raw material through to packaging of finished products.
The JV has capital of 250 million yen, with ownership split 55% SDK, 40% Mitsubishi and 5% Shoko. It will employ around 160 people and have a production capacity of 20,000 tons per year of WA and 20 million carats per year of CBN.
ENDS