Bayer and Teijin Chemicals Sign Letter of Intent to Sell Each other Certain Grades of Polycarbonate

Teijin Chemicals Ltd., Japan, and Bayer MaterialScience AG, Germany, have signed a letter of intent (LOI) to supply each other with specific polycarbonate resin grades on a regional basis. This agreement will enable both companies to improve efficiency, enhance productivity and increase the availability of polycarbonate in the global market. Financial details of the agreement were not disclosed. Teijin Chemicals is producing Panlite® polycarbonate in Japan and Singapore. Bayer MaterialScience is producing Makrolon® polycarbonate in Germany, Belgium, USA and Thailand.

Both companies have new polycarbonate production plants under construction in China. Initially, as part of the agreement, Bayer and Teijin have agreed to supply each other with specific types of polycarbonate resin for specific application. Teijin Chemicals is planning to start Panlite® polycarbonate production in Jiaxing city, Zhejiang District in April 2005. Bayer will start its Makrolon® polycarbonate production in the Shanghai Chemical Industry Park in mid-2006. The cooperative range can be expanded depending upon the degree of its progress.

Teijin Chemical Ltd. is a leading manufacturer of polycarbonate resin, composite resins, polycarbonate sheet, polyethylene terephthalate resin for PET bottle, polyethylene naphthalate resin, fumigants and flame retardants. The group turnover was about 100 billion yen in fiscal year 2003. Customers are in the field of optical data storage, office automation, the electrical and electronics and automotive industries.

With sales of EUR 7.5 billion in 2003, Bayer MaterialScience AG is a leading manufacturer of innovative, high-performance materials for applications in numerous areas of daily life. Customers include the automotive and automotive supply industries, as well as companies in the electrical and electronics, construction, home living, sports and leisure sectors. Bayer MaterialScience operates 40 production sites worldwide and employs about 18,000 people.

For more information on polycarbonate, click here.

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