December 11, 1996

A joint venture company between Kaneka Corporation and
Nippon Paper Industries

Nippon Paper Industries Co., Ltd.

A joint venture company will be established by Kaneka Corporation with its headquarters in Osaka, Takeshi Furuta, President and Nippon Paper Industries Co., Ltd., with its headquarters in Tokyo, Masao Kobayashi, President for the purpose of manufacturing and sales of PSP(polystyrene foam sheet). The name of new company will be "Sun Polymer Corporation"
The main market for PSP is the food packaging materials by utilizing the plastic foam sheet for super markets and convenient stores to keep foods in a freshcondition, and its market has been growing very rapidly. Especially in view of increasing number of bending machines, and microwave-oven grade, PSP market is expanding because of its unique quality.
The objective of establishing a new company is to strengthen the PSP business by supplementing each other to create a strong business foundation in the twenty one century.
Kaneka Corporation has been supplying raw materials for synthetic resin, bio-science, electronic materials , and others by using a basic chemical technology of polymer and fermentation.
The company has a high technology in the polymeric chemical and plastic preparation, and holds No.3 position in the PSP industry with its knowledge of polystyrene and extrusion technology. Whereas Nippon Paper has a wholly own subsidiary company, Pearl Packaging Co., Ltd., who's position is No.4 with its film printing and laminating.
The total production of Kaneka Corporation and Nippon Paper Industries together was 31,000 tons per year in 1995.
A new company has completed its preparation for legal registration, and is proceeding the unification to start its business on April 1, 1997. A renewal of manufacturing process and collection of equipment to rationalize its management will be implemented to improve the competitiveness.
Company name : Sun Polymer Corporation
Authorized capital : 900 million yen
Equity ratio : Kaneka Corporation and Nippon Paper Industries 2:1
Head office : 1-12-32 Akasaka, Minatoku, Tokyo
President : Takeyuki Mizuno
Employee : 100
Business : Manufacturing and sales of such PSP related business as plastic for package and industrial use. and printing on paper and resin.
Sales : 10 billion yen per year
Foundation : December, 1996