Mitsui Chemicals to License PP Process to Thai Polypropylene.

Tokyo, Japan, Feb 5, 2007 - (JCN Newswire) - Mitsui Chemicals, Inc. (TSE: 4183) signed an agreement on January 31, 2007, with Thai Polypropylene Co., Ltd., a wholly owned subsidiary of SCG Chemicals Co., Ltd, to license its polypropylene (PP) manufacturing technology. The technology will be applied at Thai Polypropylene's No. 3 Plant in Rayong Province, Thailand. SCG Chemicals is a petrochemical holding company of the Thailand-based Siam Cement Group.

The plant is to be one of the main downstream plants under SCG Chemicals new naphtha cracker project, and expected to be completed in 2010 with a design capacity of 400KTA. PP is a kind of plastics applied to automobile parts and packaging materials.

Mitsui Chemicals has already licensed the technology to No.1 and No.2 Plants of Thai Polypropylene. The No.3 Plant will be licensed the sophisticated manufacturing process which is being used in Mitsui Chemicals' Osaka Works (300KTA). The plant will have world-class production capacity of 400KTA, which will augment Thai Polypropylene's total PP production capacity up to 720KTA.

Mitsui Chemicals is well known for its world-class technologies, and its product quality meets the high requirements of the automobile industry. This license agreement reflects Mitsui Chemical's customers' trust and reliance on the company's technologies. SCG Chemicals also has a plan to establish another 400KTA plant for manufacturing high-density polyethylene (HDPE) under Mitsui Chemicals's HDPE process technology. The license will be provided to Thai Polyethylene Co., Ltd.

Under the newly developed Grand Design, the basic management framework of the Mitsui Chemicals Group, the company will pursue the new corporate vision, "Chemistry, Innovation, Dreams - The Mitsui Chemicals Group is constantly pursuing innovation and materializing dreams with the wonder of chemistry." The company will commit itself to realize this vision through active licensing business.

Aboutf SCG Chemicals Co., Ltd.

SCG Chemicals, headquartered in Bangkok, is a petrochemical holding company which is wholly owned by The Siam Cement Public Company Limited. The company produces Ethylene (800KTA), Propylene (400KTA), HDPE* (560KTA) HDPE/LLDPE (420KTA), PP* (320KT), and LDPE (100KTA). New plants scheduled for completion in 2010 will produce Ethylene (900KTA), Propylene (800KTA), HDPE* (400KTA), LLDPE (300KTA) and PP* (400KTA). (*Mitsui Chemicals technologies.) SCG Chemicals is capitalized at approx. 7.1 billion baht (approx. 21.3 billion yen).

About Mitsui Chemicals

Headquartered in Tokyo, Japan, Mitsui Chemicals, Inc. (TSE: 4183) is a diversified chemical company with offices in Europe, China, Singapore and America. A worldwide leader in the chemical industry, the company is actively engaged in numerous industry segments including Functional Chemicals and Engineering Materials, Functional Polymer Materials, Basic Chemicals and Petrochemicals. For more information on Mitsui Chemicals, Inc., visit the corporate website at www.mitsui-chem.co.jp.

Source: Mitsui Chemicals

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