December 15, 2003 Mitsubishi Rayon Co., Ltd. Mitsubishi Rayon plans commercial production of acrylic coating resins in China    The management of Mitsubishi Rayon has taken the decision to add a second line of business - acrylic coating resins - to the manufacturing activities planned to start from 2005 at their subsidiary in China, Mitsubishi Rayon Polymer Nantong Co., Ltd.. Permission for the production of coating resins was received from the Chinese authorities in December 2003.    The parent company's total investment in Mitsubishi Rayon Polymer Nantong (to be located in the city of Nantong; President, Takumi Ubagai), including for both acrylic sheets and acrylic coating resins, will amount to approximately $35 million, and the manufacture of both product lines is projected to commence in the spring of 2005. Acrylic coating resin production volume is estimated at 3,500 tons per year.     The market for acrylic coating resins in China, including non-specialty materials, is currently estimated at between 60,000 and 70,000 tons per annum. Demand is growing especially rapidly for high-value-added coatings with special functions - the forte of Mitsubishi Rayon - mainly for use in IT equipment, consumer electronics, cars, motorcycles, and so forth. Annual total demand for coating resins in these specialty fields is believed to be around 15,000 tons per annum, and this is projected to grow by more than 15% per year for the foreseeable future.     The City of Nantong, being on the coast of Jiangsu Province close to Shanghai, enjoys comparatively good access not only to the eastern Chinese market centered on Shanghai, but also to the northern Chinese market centered on Beijing and the southern Chinese market, whose main industrial center is Hong Kong. We also look forward to synergy as Mitsubishi Rayon also has an acrylic resin molded materials subsidiary in Nantong.     The MMA (methyl methacrylate) business complex, including the co-polymer PMMA resin, is the Company's core businesse. We operate a comprehensive and synergy-generating system encompassing both upstream and downstream businesses, which we call the MMA Chain. Leveraging our strengths in this field, we are not merely confident of maintaining our position as the leading company in Asia, but have also set our sights on developing further overseas so as to grow to become No. 1 in the world. Outline of Company 1. Name: Mitsubishi Rayon Polymer Nantong Co., Ltd. 2. Address: No6 Guangzhou Road, Nantong Economic & Technological Development Area, Jiangsu Province, China 3. Establishment: December 27, 2002 4. Paid-in capital: US $19 million 5. Shareholders: Mitsubishi Rayon Co., Ltd. 6. Line of business: Manufacture and sale of acrylic sheets and acrylic coating resins 7. Production capacity: acrylic sheets – 20,000 tons per annum acrylic coating resins – 3,500 tons per annum 8. Start of operation: Spring 2005 For further information, please contact: Mitsubishi Rayon Co., Ltd.   Public & Investor Relations Office   e-mail: koho@mrc.co.jp   [PAGE TOP]