Showa Denko officially decided to transfer its industrial gas business to its fully owned subsidiary Showa Tansan at the board meeting held on June 27th.

　The transfer was implemented through absorption and spinning off in that Showa Denko will be a spun off company and its fully owned subsidiary Showa Tansan will be the successor company. The agreement will become effective on January 1, 2012. Showa Tansan will undergo expansion as a consolidated industrial gas company as a member of Showa Denko Group.

Sales of the industrial gas business of Showa Denko which will be transferred to Showa Tansan amount to ￥8.969 billion. Total sales of Showa Tansan for the financial period of January to December in 2010 amounted to ￥30.422 billion, but this had already included the amount which Showa Denko transferred to Showa Tansan. Annual sales of Showa Tansan will therefore amount to ￥30 billion plus several billion yen even after the transfer. Currently Showa Tansan is capitalized at ￥2.79 billion. The capital after the transfer will be decided upon in October of this year.

Production in Kawasaki, Kanagawa Prefecture, and in Oita, Oita Prefecture, will be handled by Showa Denko.