On September 9, Mitsubishi Rayon received approval from the Chinese government of Jiangsu Province for the merger of its consolidated subsidiaries Nantong Rayon Chemical Co., Ltd. (NRC) and Mitsubishi Rayon Polymer Nantong Co., Ltd. (MRPN), both located in the province. The Company expects to receive a business license for the new entity from the Nantong Administration for Industry & Commerce on September 30.
　　
　　1. Merger Objective
　　
　　NRC and MRPN, our leading companies for the production and sale of acrylic polymers in China, have been operating steadily since the commencement of activities. Production in China of PMMA (polymethyl methacrylate) pellets, acrylic sheets and acrylic coating resins has enabled us to expand the growth of the Mitsubishi Rayon Group’s MMA business chain. The current merger will integrate the operations of the two companies, which are located in the same industrial park and share the same raw materials, with the aim of further raising operational efficiency.
　　
　　2. Merger Details
　　
　　1) Merger schedule
　　
　　Merger approval date: September 9, 2009
　　
　　Planned merger date: September 30, 2009
　　
　　2) Merger format
　　
　　The operations of NRC will be absorbed into MRPN, with MRPN to be the surviving entity. Regarding NRC, we will begin the registration of liquidation procedures from October 2009, and plan to finish the registration process by the end of 2009.
　　
　　3) Impact on Performance Results
　　
　　As a merger of two consolidated subsidiaries, it is expected to have a minimal impact on the Group’s consolidated financial results.
　　
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