Carbon in Japan
13 Sep 2002
Calgon Carbon and Mitsubishi Chemical Corporation are to form a joint venture partnership that will produce and sell activated carbon and related services throughout Japan.
The new company, Calgon Mitsubishi Chemical Corporation, will begin operation in October this year. Mitsubishi Chemical will own 51% of the joint venture, while Calgon Carbon will own 49%.
As the minority owner, Calgon Carbon will report results under the equity method of accounting. While this will reduce total consolidated sales for Calgon Carbon by about $7 million annually, it will have a positive effect on its net income. On an earnings per share (EPS) basis, it is expected that the joint venture will contribute about $0.04 to Calgon Carbon's EPS in 2003.
Calgon Carbon is the world's largest producer of granular activated carbon and operates a reactivation facility in Fukui Prefecture, Japan. For its part, Mitsubishi is the largest producer of granular activated carbon in Japan.
