Under this agreement, Tokuyama Corporation and Central Glass Co., Ltd will establish a joint venture company and transfer and consolidate the sales businesses for those products.
The domestic market for soda ash has seen a major contraction in demand due to the economic stagnation following the bankruptcy of Lehman Brothers and there is no prospect of a recovery. There has been a long-term and persistent decline in demand for glass and powder detergents, the major applications of soda ash, and growth and recovery of the market will be tough going forward due to the fact that users of the products are transferring their operations overseas, among other factors.
Given these circumstances, Tokuyama Corporation and Central Glass Co., Ltd have judged that it is essential to reconstruct the soda ash and calcium chloride businesses to create a business structure that is optimal for the current market environment, and therefore decided to establish the joint venture company.
• Company name: Under consideration
• Head office: Tokyo (planned)
• Representative: Selected from Tokuyama (planned)
• Established: April 1, 2014 (planned)
• Commencement of operations: October 1, 2014
• Paid-in capital: 10,000,000 yen (investment ratios: Tokuyama 65%, Central Glass 35%)
• Major products: Sale of soda ash and calcium chloride
Reference (Production capacity of the two companies) *Nominal capacity
Product name Tokuyama Central Glass Total
Soda ash 340,000 tons 250,000 tons 590,000 tons
Calcium chloride 190,000 tons 180,000 tons 370,000 tons