To: Dennis Roth who wrote (175191 ) 1/18/2013 8:51:32 AM From: Dennis Roth 1 Recommendation Respond to of 206085 Japan chemical firms eye shale gas projects Jiji Pressyomiuri.co.jp Japanese chemical makers are striving to take advantage of the shale gas revolution in the United States to cut production costs, industry officials have said. Domestic firms are racing to catch up with overseas rivals by stepping up efforts to develop technologies for utilizing the low-priced gas and increasing production of chemical materials in the United States, the officials said. Industry leader Mitsubishi Chemical Holdings Corp. is expected to form a tie-up with a foreign chemical maker based on the use of shale gas. Dow Chemical Co. has been tipped as a potential partner. Mitsubishi Chemical hopes to use U.S. shale gas to produce resin for automobile parts and liquid crystal display panels, informed sources said. Kuraray Co. plans to build a resin plant for adhesives and LCD panels in Texas, a key center for shale gas development in the United States, in September 2014. Mitsui Chemicals Inc. is also considering additional overseas investments. "A foreign company has invited us to join a shale gas project," President Toshikazu Tanaka said. Asahi Kasei Corp. has developed technologies to produce materials for synthetic fibers and resin from natural gas, an achievement that will make production costs far lower than those incurred when making the same materials from oil. The company is considering starting mass production of such materials from natural gas in the United States and Southeast Asia. "The use of shale gas would be an option," an informed source said. U.S. and European players, such as Dow Chemical, have already made massive investments in shale gas projects, ahead of rivals in Japan. Japanese players are struggling with the yen's prolonged strength and rising electricity charges. Shale gas is key to the revival of Japan's raw materials industry, said Yoshimitsu Kobayashi, president of Mitsubishi Chemical. (Jan. 18, 2013)