Mitsui Chemicals Building High-Performance Elastomers Plant in Singapore

September 20, 2001

The groundbreaking ceremony for a new production plant for TAFMERTM high-performance elastomer of Mitsui Chemicals, Inc. (MCI) was successfully conducted today by Mitsui Elastomers Singapore Pte Ltd. (MELS) on Jurong Island, Singapore, attended by Mr. Teo Ming-Kian, Chairman, Economic Development Board of Singapore, and other dignitaries.

A strategic product of one of MCI's core businesses, TAFMERTM resin modifier when used together with polyethylene and polypropylene helps drastically improve their impact strength and flexibility.

When completed in December 2002 at a total investment of 100 million US dollars, MELS's TAFMERTM plant will have a production capacity of 100,000 ton/yr,

A fully owned subsidiary of MCI established with a capital of 35 million US dollars in February this year, with headquarters in downtown Singapore, MELS is designed to engage in the production and sale of elastomers mainly consisting of TAFMERTM. and is expected to begin commercial operation in April 2003.

TAFMERTM is a product which MCI developed and commercialized ahead of the competitors and for which MCI created the market through vigorous application development efforts. MCI holds the largest share of the high-performance elastomers market in Asia including Japan.

In the recent years, MCI has focused its outstanding polymer technology and marketing strengths in a concentrated effort to develop the applications and the markets for TAFMERTM as a lightweight and flexible molding material.

As the Asian economy and industry undergoes further development and sophistication, the demand for TAFMERTM is projected to only continue growing in the market centered at Asia.

In that regard, the TAFMERTM plant project this time is one characterized by an important strategic significance toward further securing the foundation of MCI's TAFMERTM business. MCI's unrivaled strengths in polymer technology would be fully brought to bear in constructing a state-of-the-art production plant of a largest scale in the world.

Once the new plant is on stream, MCI's total TAFMERTM capacity including its Japanese capacity will reach 200,000 ton/yr thereby further boosting MCI's presence as Asia's top maker in this field.

For further information, please contact:

Mitsui Chemicals, Inc.
Corporate Communications Division
Tel: +81-3-3592-4060
Mitsui Elastomers Singapore Pte Ltd
Tel: +65-532-4030