Yokohama, Japan - An agreement was reached between JGC Corporation and Asahi Glass Co., Ltd. for JGC to buy out the latter's 49% interest in Catalysts & Chemicals Industries Co., Ltd., a venture business owned jointly by the two companies. Following the signing of the stock transfer agreement on July 7, 2004, Catalysts & Chemicals Industries has become a 100% owned subsidiary of JGC.

JGC views Catalysts & Chemicals Industries as a key company in the catalysts and chemicals business which, along with its broad-based engineering business, represents a key element in JGC's activities. Catalysts & Chemicals Industries develops, manufactures, and markets both catalyst products (FCC catalysts, hydro-treating catalysts, DeNOx catalysts) and nano-technology products (life science-related materials, LCD and display materials, and semiconductor materials).

Catalysts & Chemicals Industries' catalyst products, such as FCC catalysts, which account for 75% of domestic production, are highly rated among customers for their performance and quality. As measures are increasingly being sought to tackle pressing environmental problems such as the greenhouse effect, the business climate in the petroleum refining industry is changing, as seen in the lowered demand for fuel oil C and the tightening of regulations limiting the sulfur content in fuels. The petrochemical industry is also undergoing significant change, with the focus now on expanding the sales of specialty chemicals due to an increased demand for propylene products, while shifting away from standardized production. 　　Overseas, particularly in Asian countries, and especially China, there is a growing need to balance the surging demands for energy with environmental concerns. Many are expecting improved performance from catalysts to be a large part of the solution. Accordingly, the demand for catalysts will continue to expand and the overseas market for catalysts will grow.

Catalysts & Chemicals Industries' nano-technology products are an outgrowth of the company's development of catalysts incorporating nano-technologies. The company has 26 years of experience developing nano-particles preparation technologies, nano-particles alignment control technologies, nano-pore preparation technologies, and macro-structure control technologies. These nano-technology products are highly value-added and distinctive. They include spacers for liquid crystal panels, top coating materials for liquid crystal displays, dielectric coating material for semiconductors, as well as life science-related products such as texture improvement materials for cosmetics, optics materials, hard-coating materials used for low and high refractive index plastic lenses, and antibacterial deodorants. The company is expected to maintain its pattern of growth by expanding its various businesses through the application of nano-technologies to new products.

JGC believes that Catalysts & Chemicals Industries, as a wholly-owned subsidiary, will boost corporate values across the entire JGC group as result of the synergetic effect that the new company is expected to deliver.