News Release

HighChem Company Limited (Headquarters: Minato-ku, Tokyo President and CEO: Ushio Taka hereinafter referred to as HighChem) is pleased to announce the establishment of its new regional headquarters, "HighChem (Shaanxi) Management Co., Ltd." (Below, Northern Headquarters). in Yulin City, Shaanxi Province, commencing operations on October 1st. The creation of the Northern Headquarters aims to consolidate HighChem's functions in Northern China, enhancing synergistic effects and leveraging the strategic location of Yulin to bolster its bridge-building activities between Japan and China. This expansion is part of HighChem's ongoing efforts to facilitate effective integration and cooperation across the region.

Since its founding in 1998, HighChem has established 11 locations in major cities in China, starting with the opening of the Shanghai branch. Currently, sales in China account for 60% of consolidated sales (57 billion yen in fiscal 2020), exceeding 34 billion yen. With the establishment of the Northern Headquarters in Yulin City, we will integrate HighChem's resources in northern China and aim for stable growth in the China area along with the Shanghai and Chongqing areas, which are centered on international trade.

Opening ceremony held at Qingshui Industrial Park in Yulin Economic Development Zone

Purpose of establishment of Northern Headquarters

1. Demonstrating synergy effects by consolidating functions in the northern China area
HighChem has inaugurated its comprehensive Northern Headquarters in Yulin City, Shaanxi Province, tasked with overseeing research and development, technology licensing, international trade, and investment management. This strategic move places HighChem at the heart of Northern China's chemical industry hub, surrounded by major chemical producers in Shaanxi and Shanxi provinces, known for their diverse chemical manufacturing capabilities. The Northern Headquarters will deepen roots in this critical region, establishing strong relationships with local chemical companies to leverage domestic and international sales opportunities through HighChem's extensive network. By efficiently integrating HighChem's C1 chemical technologies and the advanced chemical manufacturing techniques of Japanese enterprises with the local production capacities, the new headquarters is set to create new value and opportunities for technological innovation and investment. This strategic expansion is designed to maximize synergistic effects, enhancing HighChem's impact in the region and beyond.

2. Strengthening Business Bridges: Leveraging Yulin's Strategic Location Next to Rich Resources and Industrial Hubs for Enhanced Collaboration with Japanese Companies
HighChem's Northern Headquarters in Yulin, Shaanxi, capitalizes on strategic advantages in raw material and market access, crucial for industries such as automotive, packaging, construction, and textiles. Adjacent to populous provinces like Henan and Sichuan, and with access to competitively priced chemicals from local coal chemical complexes, this location optimizes HighChem’s logistical and production efficiencies. The region's by-product of hydrogen, from coal-to-chemical processes, further supports cost-effective and sustainable operations.

Yulin City is actively attracting Japanese companies, leveraging its rich resources and industrial proximity. HighChem has been instrumental in these efforts through its support for recruitment initiatives. Additionally, the city will see the resumption of construction on Shaanxi Coal and Chemical Industry Group's ¥2 trillion coal chemical complex. This project features the world's largest ethylene glycol production facility, with an annual output of 1.8 million tons, utilizing licensed SEG® technology. The project is expected to restart this autumn and commence production within the year.

Building on its extensive industrial parks and rich resources, Yulin City is not only resuming construction on the world’s largest ethylene glycol plant, powered by Shaanxi Coal and Chemical Industry Group's ¥2 trillion investment, but is also advancing green technology developments. Utilizing SEG® technology, which converts various carbon sources including coal, the initiative now embraces carbon dioxide and biomass to produce ethylene glycol and other sustainable products. Furthermore, leveraging its geographical advantages, Yulin is actively establishing joint ventures with Japanese companies, significantly strengthening the Sino-Japanese business bridge and creating more sustainable, global-scale enterprises.

* SEG® technology: A technology that uses synthetic gas as a raw material to produce non-petroleum-derived ethylene glycol (a type of polyester manufacturing raw material). This technology is based on technology owned by Ube Industries, Ltd., and we are developing a licensing business in which Ube Industries licenses the DMO technology to us, and we license SEG® technology, including DMO, to Chinese companies.

In the Yulin Economic and Technological Development Zone, which is the largest development zone in the planned area, major Chinese companies such as Extinction Petroleum, Shaan Coal Group, and Shenhua Group have made large-scale investments, producing olefins, aromatic hydrocarbons, ethylene glycol, The company plans to produce 5 million tons of fuel oil and fine chemicals each year. In addition, manufacturing Chemicals using abundant coal as a raw material in Yulin has advantages in terms of production costs and product quality, so we are also focusing on expanding into downstream industries.

Media inquiries regarding this release
HighChem Co., Ltd. PR Division – Eriko Kuroiwa
E-mail: kuroiwa@highchem.co.jp Phone: +81-3-5251-8580 / +81-90-6539-4213 (Kuroiwa)