NIPPON SHOKUBAI announces PT. Nippon Shokubai Indonesia, a subsidiary in Indonesia("NSI"), builds a new SAP plant

For Immediate Release July 30, 2010

NIPPON SHOKUBAI announces PT. Nippon Shokubai Indonesia,
a subsidiary in Indonesia (“NSI”), builds a new SAP plant

NIPPON SHOKUBAI CO., LTD. [Tokyo Stock Exchange – TOKSE:4114.T] (“NIPPON
SHOKUBAI”) hereby announces that NIPPON SHOKUBAI has resolved, at its board
meeting held on July 30, 2010, to give NSI an approval to build a new superabsorbent
polymers (“SAP”) plant at NSI’s plant site. SAP is positioned as one of core business in
the 6-years business plan named “Technoamenity 2015” starting from April 2010.

1. Feature of investment
Production capacity (SAP): 30,000 metric tons per year
Schedule: Mechanical completion - the end of 2012.
Commercial operation - March 2013.
Location: Existing plant site of NSI
Investment amount: around 35 million US dollars (except ancillary facilities)

2. Corporate outline of NSI
Location: Cilegon, Indonesia (headquarter and plant)
President: Masakazu TANAKA
Business: Production and sales of acrylic acid(“AA”) and acrylates (“AES”)
AA Capacity: 60,000 metric tons per year
Capital: 120 million US dollars – paid in capital
93.7％ owned by NIPPON SHOKUBAI
Number of employees: 264 as of December 31,2009
Established: August, 1996

3. Background and investment purpose
SAP, one of NIPPON SHOKUBAI’s core business, shows steady growth of demand as
a raw material of disposable diapers.The growth of its demand is remarkable especially
in the emerging market, and the new SAP plant at Himeji Plant of NIPPON
SHOKUBAI, scheduled mechanical completion in coming autumn with a capacity of
60,000 tons per year, is expected to be fully utilized soon after its start-up. In order to
satisfy such market demand, NIPPON SHOKUBAI has studied a further expansion of
the SAP capacity.
As a result of the study, NIPPON SHOKUBAI decided to build a new SAP plant at
NSI. This is because NSI is located in Southeast Asia where SAP demand is growing
greatly, NSI produces AA that is a main raw material of SAP, and the synergy effect can
be expected in the point of the energy efficiency.
With this new plant at NSI, NIPPON SHOKUBAI group’s total SAP production
capacity in the world will be 500,000 metric tons per year and NIPPON SHOKUBAI
will enhance its position as a world top supplier of SAP.

４．Influence on the business results
This project makes no influence on the business results of the current fiscal year
ending on March 31, 2011. As for the business results in future, from the fiscal year
ending on March 31, 2013, NIPPON SHOKUBAI will maintain and improve
profitability by utilizing the new SAP plant effectively and optimizing the balance of
SAP and existing AA/AES business.

Contacts
General Affairs, NIPPON SHOKUBAI CO., LTD.
TEL: +81-6-6223-9111 E-mail: shokubai@n.shokubai.co.jp