Riken Technos, Mitsubishi Corp. to Establish Joint Venture in US

Tokyo, July 21, 2006 (JCN) - Riken Technos and Mitsubishi Corp. have announced the establishment of Riken Elastomers in Hopkinsville, Kentucky, in their efforts to respond to future demands for thermoplastic elastomer compounds from Japanese auto manufacturers in the US.

Capitalized at $10 million, the new venture will kick off operation in July 2007. The partners expect the new company to generate annual sales of 400 million yen ($3.4 mil) in 2007 and 1.8 billion yen ($15.5 mil) in 2009.

Riken Technos, Mitsubishi Corp. and Mitsubishi International will own 60%, 30% and 10%, respectively, of the new US venture.

By Aki Tsukioka, JCN Staff Writer