Showa Denko and KH Neochem agree to dissolve Ethyl Acetate JV

07-Nov-13

Showa Denko and KH Neochem Co., Ltd. have agreed to dissolve their joint venture, Japan Ethyl Acetate Co., Ltd. (JEA). JEA was established in August 2003 for the purpose of strengthening the foundations of the two parent companies' ethyl acetate businesses. JEA began commercial production in April 2004. While demand for ethyl acetate has grown inside and outside Japan since then, the business environment has changed dramatically, reflecting the rise in raw material costs and capacity expansions in neighboring countries. Under the circumstances, SDK and KHNC have concluded, after mutual consultation, that it is difficult to continue JEA's operations. Thus, the two companies have agreed to stop ethyl acetate production at JEA, and dissolve the company.