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CORPORATE NEWS [latest news list] September 21, 2007
Daikin Industries, Ltd.
line
Daikin and Arkema Establish Joint Venture in Asia Specializing in New Air-conditioning Refrigerants



Daikin Industries, Ltd. (Head office: Osaka, Japan, hereafter "Daikin") and Arkema Incorporated (Head office: Paris, France, hereafter "Arkema") have agreed to establish a new company, Daikin Arkema Refrigerants Asia, Ltd. (hereafter "Refrigerants JV"), to market new refrigerants for air-conditioners* in the Asian and Oceanian regions, excluding Japan, as well as a new company, Arkema Daikin Advanced Fluorochemicals (Changshu) Co., Ltd. (hereafter 125 JV), to manufacture and market HFC-125, the main component of new refrigerant gases, in November 2007.

HFC-125 is a fluorocarbon gas essential in generating new refrigerants. As a limited number of companies manufacture it, one issue that has arisen is securing a stable supply of HFC-125 after 2010, when demand is expected to dramatically increase.
Through establishment of the 125 JV, Daikin and Arkema seek to ensure a stable supply of HC-125 after 2010 as well as enhance cost competitiveness through a fusion of both companies' technologies. In addition, HFC-125 manufactured and marketed by the 125 JV will be mainly used in new air-conditioning refrigerants (R-410A, R-407C, R-404A), which the Refrigerants JV plans to market throughout the Asian and Oceanian region. Daikin and Arkema also plan to market the new refrigerants on a global basis.

New refrigerants do not impact the ozone layer and are an alternative to HCFC refrigerants chiefly used to date. Manufacturers are expected to completely phase out HCFC refrigerants in the future. HCFC refrigerants have been banned in air-conditioners manufactured in Europe following regulations dated to 2004 and almost completely phased out in Japan as well. In addition, from 2010 HCFC refrigerants will be banned in air-conditioners manufactured in the United States.
Regions experiencing growth in AC demand, such as China, are also expected to make the switch to new refrigerants. Therefore, worldwide demand for new refrigerants is expected to increase dramatically.

Daikin and Arkema have built a close relationship in various business collaborations since the latter half of the 1990s, including the fluorine resin business in Changshu, China and the fluoroelastomer business in Lyon, France.
Looking at global developments outside the Asian and Oceanian region as well, establishment of the new companies represents efforts to expand collaboration in the field of refrigerants and achieve new cooperation in the chemical business transcending the boundaries of the refrigerant field.

   *New refrigerants: Fluorocarbon gas/HFC-based refrigerants that do not impact the ozone layer.
Fluorocarbon gas composition of new HFC-based refrigerants
  R-410A = HFC-32:HFC-125 (50:50)
  R-407C = HFC-32:HFC-125:HFC-134a (23:25:52)
  R-404A = HFC-125:HFC-143a:HFC-134a (44:52:4)

[Outline of new companies]
1. Company name: Daikin Arkema Refrigerants Asia, Ltd.
2. Place of incorporation: Special Administrative Region, Hong Kong, China
3. Capital: $1 million USD (approximately 120 million yen)
4. Investment ratio: 60% Daikin Industries, Ltd., 40% Arkema Inc.
5. Established: November 2007
6. Business area: Sale of new refrigerants (R-410A, R-407C, R-404A), sale of refrigerants HCFC-22, HFC-134a (to Asia and Oceania, excluding Japan)
7. Number of employees: 12 (planned)


1. Company name: Arkema Daikin Advanced Fluorochemicals (Changshu) Co., Ltd.
2. Place of incorporation: Changshu, Jiangsu province, China (within Arkema's Changshu plant)
3. Capital: $41.4 million USD (approximately 4.76 billion yen)
4. Investment ratio: 40% Daikin Industries, Ltd., 60% Arkema Inc.
5. Established: November 2007
6. Business area: Manufacture and sale of HFC-125 (new hydrofluorocarbon gas refrigerant)
7. Number of employees: approximately 40 (planned)

[Outline of Arkema Inc.]
1.Company name: Arkema
2. Head office: Paris, France
3. Chairman and CEO: Thierry le Hénaff
4. Established: 2006 (became independent from Total)
5.Sales: 5.66 billion euros (approx. 880 billion yen) *Consolidated basis for period ending December 2006
6. Description of business: Manufacture and sale of vinyl products, industrial chemicals and performance products
7. Number of employees: 17,000


  For more information, please contact
     Daikin Industries, Ltd.



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