14 February 2013 13:43 [Source: ICIS news]
TOKYO (ICIS)--Japanese chemical producer Showa Denko plans to merge with its wholly-owned subsidiary Marusho Kogyo in April 2013, the company said on Thursday.
Marusho Kogyo, a seller of liquefied ammonia and industrial aqueous ammonia, had a shipment base in Fukushima prefecture in northeastern Japan, but it was damaged by the massive earthquake and tsunami on 11 March 2011, Showa Denko said in a statement.
This forced Marusho Kogyo to suspend its operations, it added.
Showa Denko said it has decided to reconstruct the shipment base and merge with Marusho Kogyo in order to ensure stable supply in the Tohoku (northeastern) region based on an integrated system of production and sales.
The merger agreement, approved by Showa Denko and Marusho Kogyo on Thursday at their board meetings, is scheduled to take effect on 25 April, 2013, with Showa Denko being the surviving company.
The company did not disclose when the reconstruction of the shipment base will be completed.
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