Impact of Japan Earthquake/Tsunami - 3/16/11 Update

Dear Asahi Kasei Plastics Customer,

As you are well aware, a major earthquake and tsunami has heavily impacted many communities in northern Japan (Tohoku region).  Thankfully, our employees are safe and none of our polymerization plants producing Xyron^TM, Leona^TM and Tenac^TM has sustained any damage. 

The maps below show plant locations in relation to the areas affected by the earthquake.

Japanese Operations:

Production by Product Line-Up:

• Xyron^TM is polymerized mainly in Singapore.
• Leona^TM is polymerized in the southern part of Japan.
• Tenac^TM & Tenac-C^TMis polymerized in the southern part of Japan (and also in China).
• Thermylene^® is compounded in North America and production is not affected.
• Thermylon^® is compounded in North America and production is not affected.

Although our plants are able to operate normally, we are taking a close look at our supply chain for additives produced in the east side of Japan.  The potential for challenges with utilities and logistics is also being closely monitored.  As more information becomes available, periodic updates will be posted via Twitter @Asahi_Kasei_Inc.  If you have additional questions feel free to connect with us on Twitter or use our web contact form to connect.

Sincerely,

John Moyer
President
Asahi Kasei Plastics North America Inc.

Enclosure: Global Operations Map (below)

Japan Earthquake Update - 3/11/2011

Asahi Kasei Plastics Customers and Suppliers

Since the earthquake and tsunami hit the northern coast of Japan, we would like to thank you for the concern that has been shown for our Japanese employees and operations at Asahi KASEI.

We have received word that our staff is safe and production facilities are undamaged.  Our expectation at this moment is that we will be continuing production.  As the situation continues to unfold and the broader impact of the earthquake and tsunami is better understood, periodic updates will be provided.

Asahi Kasei Plastics Invests $5.5M in Manufacturing Expansion

March 9, 2011 – Fowlerville, Mich., Asahi Kasei Plastics North America, Inc. is undergoing a major expansion program to accommodate increased business with the Leona^TM (PA66 and PA66/6I) and Xyron^TM (mPPE) engineering plastics product families.  Production capacity will increase 30% with the addition of a new compounding line and peripheral equipment.  Asahi Kasei Plastics is also adding an additional line in the lab for R&D, new product development and improved customer support. 

In addition to the latest state-of-the art equipment and technology, the $5.5 million investment supports 10 new jobs for skilled trades and support personnel.  Asahi Kasei Plastics is also adding 6 new positions in sales, marketing and development to support growth opportunities.  This investment comes on the heels of a $3 million investment in 2010 to upgrade existing production lines to accommodate the growing business.

Xyron EV-103, A Materials Innovation Category Finalist

Asahi Kasei Plastics is proud to have Xyron^TM EV-103, one of our advanced engineered resins, as a finalist in the Materials category of the Society of Plastics Engineers (SPE) Innovation Awards.  EV-103, a combination of a modified polyphenylene ether and polypropylene, was featured in the 2010 BMW X6, ActiveHybrid SUV battery enclosure manufactured by Cobasys LLC.

This design presented a distinct challenge.  The material not only meets the rigors of a Ni-MH battery, but represents the first polymer designed for a liquid cooled battery application for the automotive industry.