May 14, 2001
NISSAN CHEMICAL INDUSTRIES, LTD.
SHIONOGI & CO., LTD.
Reorganization of Sales Structure for Non-cropland Market
Nissan Chemical Industries, Ltd. and Shionogi & Co., Ltd. established a joint venture company, which is called Amenitec Corporation (Amenitec), with a capital amount of 100 million yen in equal share in May 1998 in Tokyo, and integrated each sales activity of agricultural chemicals for non-cropland with commencement in October, 1998.
Despite of the above, the recent business environment in connection with non-cropland especially about golf course, drastically changed and severely became competitive by a main reason of it
’s number reduction and, as a result of Amenitec’s recent review on sales performance from the time established, we severely recognize its situation becoming a big estrangement. Based on the situation, we have mutually and seriously been discussing on this subject.Under the circumstance of current competitive and difficult market with continuously unpredictable situation, we reviewed the marketing performance for non-cropland made up to now through Amenitec and mutually agreed to study the alternatives in consideration of resetting this business operation by individual party by August this year.
Because of the agreement, we have to reorganize new structure for product development and marketing at each party, for which we are required to speed up the process of the present sales review based on our market presence for possible immediate and smooth transfer.