Showa Denko K.K. (SDK) Opens Ceramic Abrasives Plant in China.

Tokyo, Japan, June 14, 2006 - (JCN Newswire) - Showa Denko  K.K. (SDK; TSE: 4004) has started commercial production of ceramic abrasives in Lianyungang, Jiangsu Province, China, as a joint venture with Mitsubishi Corporation . After establishment in December 2003, the joint venture, Lianyungang Zhaoling Abrasives Co., Ltd., built a plant at the site and made trial runs.

"Lianyungang Zhaoling Abrasives Co., Ltd. is the most important production base for SDK's ceramics business. As a good Chinese Corporate Citizen, SDK will work hard to contribute to the sound growth of the city of Lianyungang," said SDK President and CEO Kyohei Takahashi, at an opening ceremony at the plant on June 12 before many distinguished guests, which included government and municipality officials.

The joint venture produces fused alumina (White Morundum) used as abrasives for wide applications and cubic boron nitride (SBN) for high-speed, high-precision grinding of automotive parts. SDK provides raw materials to the JV and sells all of its products.

SDK has the largest share in the abrasives market in Asia, and is one of the leading abrasive manufacturers in the world. SDK will continue to provide its customers with high-quality abrasives in a stable manner from its existing production facilities in Shiojiri, Nagano Prefecture, Japan and the new plant in Lianyungang, China.

Profile of Lianyungang Zhaoling Abrasives Co., Ltd.

Location:                19th Block, Eastern Industrial Park, Economic &
                         Technology Development Zone, Lianyungang City,
                         Jiangsu Province, China
Establishment:           December 2003
Ownership:               SDK 55%; Mitsubishi Corp. 40%; and Shoko Co.,Ltd. 5%
Representative Director: Takao Fujiwara (Corporate Officer; General Manager,
                         Ceramics Division, SDK)
Number of employees:     Approx. 100
Production capacity:     9,800 tons/year of White Morundum and
                         16 million carats/year of SBN

About Mitsubishi Corporation

Mitsubishi Corporation (TSE: 8058)(UK: MBC)(US: MSBHY) is one of the world's most diverse enterprises, and Japan's largest sogo shosha, or trading company. Mitsubishi Corporation has decades of experience doing business around the world, experience that has made it more than just a leader in international trade. The company's extensive network and wide-ranging activities give it a decisive edge in gathering the timely, accurate market information vital to success. The company's seven business groups--New Business Initiative, IT & Electronics Business, Fuels, Metals, Machinery, Chemicals and Living Essentials--work closely with clients to develop new business opportunities. Project coordination, sourcing of raw materials, capital investments and development of sales channels are just a few of the ways Mitsubishi Corporation creates value for business partners, customers and shareholders.

About Showa Denko K.K.

Showa Denko, 'SDK' (TSE: 4004)(US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods) electronic equipment (hard disks for computers), and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp.

Source: Showa Denko K.K.

Contact:

Showa Denko K.K.
Nobuhiro Kato
[e-mail]
[phone]

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