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SDK Group to Participate in Solvent Recycling in China

Published on 2005-09-14. Author : SpecialChem

Shoko Co., Ltd. (Shoko), the core trading firm in the Showa Denko Group, has decided to participate in the production and recycling of solvents in China by investing in a Chinese firm jointly with Toyotakagaku kogyo Co., Ltd. (Toyotakagaku).

Due to the rapid expansion of automobile production in China, a large amount of solvents is used in the process of painting cars and producing paints. Thus, recycling of used solvents is important in reducing costs and protecting the environment.
Under the circumstances, Shoko and Toyotakagaku will acquire this month new shares to be issued by Guangzhou Raysound Chemical Co., Ltd., a company based in Guandong Province producing solvents for paint.

Guangzhou Raysound Chemical will provide an integrated service of collecting used solvents from manufacturers of cars/paints/resins, distilling, purifying and adjusting respective components and offering recycled solvents to the customers.

To meet growing demand, Guangzhou Raysound Chemical will build a new recycling facility and expand its solvent production facility for start-up in May 2006.

Furthermore, Guangzhou Raysound Chemical will introduce the technology of Toyotakagaku, which has accumulated experience in the recycling of used solvents in Japan. Shoko will send its employees to assist in the procurement of raw materials and sales of products. Raysound Chemical (Holdings) Limited, the parent company of Guangzhou Raysound Chemical, will provide its sales network of various chemicals to facilitate the sale of recycled solvents.

Guangzhou Raysound Chemical's capital will be increased to HK$14.9 million (approx. ¥220 million), of which Raysound Chemical (Holdings) will own 65%, Toyotakagaku 20%, and Shoko 15%. Guangzhou Raysound Chemical is planning to increase its annual sales to ¥1 billion in 2010.

Source: Showa Denko Group


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