Nippon Paint Restructures

Nippon Paint is restructuring its marine coatings subsidiary to increase its presence in the global marine paint market for newbuildings, shiprepair and maintenance. As part of a strategy to build up its marine coatings business worldwide, Nippon Paint Co Ltd is restructuring its specialized subsidiary company. Nippon Paint Marine Coatings Co Ltd. Nippon Paint Marine Coatings (NPMC) is being relaunched on November 1, 2004. In the meantime, the company is developing its capability to manufacture and supply high-quality marine coatings and paints worldwide under the Nippon Paint brand for newbuildings as well as shiprepair and maintenance. NPMC will also provide technical services to customers for newbuildings and shiprepair in and outside Japan. "We shall be able to provide our customers throughout the world with Nippon Paint brand products, services and know-how," said Isao Takemoto, president of NPMC.

Nippon Paint and London-based International Coatings Ltd are terminating their association in marine coatings as of October 31. 2004. Until then, NPMC will continue to service marine customers under its ongoing product and delivery system in association with International Coatings. After October 31. 2004. NPMC will also continue to supply International-brand products such as Intersleek and Intershield 300: the company will manufacture these products and sell them under NPMC brands.

Nippon Paint is expanding its overseas business network by using manufacturing, sales, service and logistic networks established by the NIPSEA group |a part of Nippon Paint - see note 11. while also establishing new bases at key locations in Europe. America and the Middle East.

While its parent company, Nippon Paint, will continue to handle basic research and development. NPMC will be responsible for applications, development and improvements. This arrangement is intended to contribute to more efficient utilisation of the technological resources available within the group.

NPMC's restructuring will be completed by April I. 2004. This includes capital investment by Wuthelam Holdings, based in Singapore.

Nippon Paint will contribute 60 per cent of the capital investment, and Wuthelam 40 percent In 1990. Nippon Paint became the first company to develop and introduce a tin-free hydrolytic anti-fouling coating, Ecoloflex. The company is currently working on a range of advanced products and services under its own brand, as well as technical know-how throughout the world.

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