Central Glass has passed a resolution in its October 31, 2013 meeting of the Board of Directors to stop the soda ash production processes in the company's Ube Plant by the end of May 2015 and end production of soda ash and the related products. In conjunction with this change, Central Glass and Tokuyama Corporation have agreed to establish a joint venture company in April 2014 with the aim of transferring and consolidating the soda ash and calcium chloride sales businesses, and to commence operation of the business from October 2014.
The joint venture company plans to sell soda ash and calcium chloride with supplies from Tokuyama from June 2015 onwards.
Details1. Overview(1) Background and reasonsCentral Glass has developed its business based on soda ash products for over 73 years, since it commenced production of soda ash in 1940 when it was Ube Soda Industry Co., Ltd.
However, there is no prospect of an improvement in the profitability of our soda ash business in the medium or long term, so we decided to end the soda ash processes in order to accelerate the injection of management resources into high added-value businesses.
As a consequence of this, we will stop production of soda ash and the related products.
(2) Timing of the ending of soda ash processesWe will end the operation of the soda ash processes as of the last day of May 2015.
Note that we plan to transfer sales of soda ash and calcium chloride to the joint venture company from October 2014.
2. Impact on Financial ResultsFor the forecast of financial results in the current term, please refer to the "Consolidated Financial Results for the First Half Ended September 30, 2013 (April 1, 2013 to September 30, 2013)" that we plan to disclose at 4pm today.