Japan's Shin-Etsu Chemical Co., Ltd. is set to turn its Portugal-based PVC manufacturing and selling affiliate company CIRES, S.A. into a wholly-owned Shin-Etsu Chemical subsidiary company. The company's objective from this move is to ramp up the business operations of CIRES and expand its PVC business in Europe. In the future, as a 100%-owned subsidiary of Shin-Etsu, CIRES (200,000 tpa PVC capacity) will strive to strengthen its profitability by working to further improve its manufacturing technologies and sales power that have been nurtured up to the present. The procedures to make CIRES a wholly-owned Shin-Etsu subsidiary will be done through Shin-Etsu International Europe B.V. (SEIE), a Shin-Etsu Group business base in Europe. At this point, the start of the takeover bid is anticipated to be March of 2009.
CIRES was established in 1960 in Estarreja, Portugal through a joint venture among Portuguese local companies, Shin-Etsu Chemical and Mitsui & Co. The present capital share ratio of CIRES is: 47.86% held by stockholders including Portuguese local companies, 26.07% by SEIE and 26.07% by Mitsui Group. Shin-Etsu Chemical's PVC business with its tri-polar PVC production system, consisting of Shintech Inc. in the U.S. at its core together with its production facilities in Europe and Japan, has been providing stable supplies to Shin-Etsu's worldwide customers.