OSAKA, Japan, August 1, 2014-

NIPPON SHOKUBAI CO., LTD. [Headquarters: Chuo-ku, Osaka; President: Masanori Ikeda, TSE:4114] ("NIPPON SHOKUBAI") has announced the cancellation of the capacity expansion plan of "SAP" at the NSC's plant site that was announced on 31st January 2012.

1. Background "SAP", one of NIPPON SHOKUBAI's core businesses, shows steady growth of demand as a key material of disposable diapers. In China, expected as one of the largest market in future, NIPPON SHOKUBAI produces and supplies SAP through NSC and had decided expansion of the capacity by 30,000MT/Y in 2012. The expansion was however suspended, due to the accident occurred at NIPPON SHOKUBAI Himeji Plant on 29 September 2012, in order to dedicate necessary internal resources to the recovery from the accident at Himeji plant.

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