Showa Denko to Establish Abrasives Plant in China

Showa Denko will establish a joint venture with Mitsubishi Corp and begin producing ceramic abrasives in China in April 2004. By establishing an operation in China, Showa Denko aims to increase its cost competitiveness, and be better able to compete with low cost imports.

The joint venture will be known as Lianyungang Zhaoling Abrasives Co. Ltd and will manufacture white morundum and cubic boron nitride. Production of these materials will be transferred to China from Showa Denko’s Shiojiri plant.

Showa Denko will provide the technology to produce the abrasive grains. To prevent leakage of proprietary knowledge, the entire process will be monitored by the new company. Additionally, raw materials will be supplied by Showa Denko and finished products will be shipped back to Showa Denko.

Mitsubishi Corp will responsible for distribution of both raw materials and finished products.

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