Tokuyama Corporation (hereinafter referred to as "Tokuyama" or "the Company") today announced details of its decision to acquire the 14.5% equity interest in SHINDAI-ICHI VINYL CORPORATION (hereinafter referred to as "SHINDAI-ICHI VINYL") held by Sumitomo Chemical Co., Ltd. (hereinafter referred to as "Sumitomo Chemical") and to reposition SHINDAI-ICHI VINYL in the Company's scope of consolidation as a wholly owned subsidiary.

After becoming a wholly owned subsidiary of Tokuyama, SHINDAI-ICHI VINYL plans to transfer control of the equipment and assets at its Ehime Plant, located within the Ehime Works of Sumitomo Chemical, to Sumitomo Chemical and continue to manufacture PVC paste resin at its Ehime Plant by outsourcing to Sumitomo Chemical. In this manner, steps will be taken to ensure the continued supply of PVC paste resin utilizing advanced proprietary technology as well as General purpose PVC manufactured at Tokuyama Factory.

Tokuyama positions the vinyl chloride business, which continues to experience strong demand, as a core business of its Chemicals Business. By repositioning SHINDAI-ICHI VINYL in its scope of consolidation as a wholly owned subsidiary, the Company will strengthen the integrated management of vinyl chloride operations with its chlor-alkali business.