Announced the Reorganization of Asahi Denka Group
2000.4.12

The company announced the Management Structural Reform Plan focusing on the reorganization of group companies.
For the physical distribution segment, Adeka Logistics Co., Ltd. is tobe set up with 100% investment of Asahi Denka for the purpose of conducting the physical distribution services of software nature to absorb and integrate Asahi Denka's logistics sector and its subsidiary company Kyokuyu Sangyo that has been taking charge of the physical distribution of the products of the group, while Kyokushin Transport Co., Ltd. is to be incorporated with the investment by Kyokuyu Sangyo's employees for physical distribution services of hardware nature.
For the processing business, Kashima, Fuji, Mie, and Akashi Plant of Asahi Denka will be accommodated with such companies specialized in processing business as are incorporated with the investment of the employees and put their foothold in the community, and transfer the operation and employees to thosecompanies.
When Asahi Denka had a plan to construct its production facilities, ithas so far entrusted its subsidiaries, Asahi General Construction Co., Ltd. and Adeka Engineering Co., Ltd., with the basic design, detailed design, construction works and supervision, and maintenance. To reconstruct the engineering segment relating to Asahi Denka's manufacturing technologies, the two companies are to be merged into a new company with its name of Adeka General Plant Construction Co., Ltd. in an attempt to improve its cost position and manufacturing technologies.
For the purpose of reconstructing the distribution system, Asahi Food Sales Co., Ltd. (President: Mr. Eiji Kanayama) will be incorporated, to which the food division of Yoko Sangyo Co., Ltd., a subsidiary of Asahi Denka, is tobe transferred, and will later absorb Asahi Yuryo, Yoshikawa Shoji, and Shin-Pankyo that are the distribution agencies and directly-affiliatedsub-subsidiary companies of Asahi Denka, to strengthen the business foundationof food sector and promote the sales extension. Yoko Sangyo after transfer ofits food division will merge Adeka Fine Chemical Co., Ltd. to aim to exhibit its uniqueness and the synergetic effects as a medium-sized chemical trading company equipped with the R & D function.

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