March 7, 2013
SEKISUI CHEMICAL CO., LTD.

Newly completed Thai modular house factory boasts annual production capacity of 1,000 houses
—Full expansion into an overseas housing business through local production—

500 houses to be built in FY 2014; 1,000 houses to be built in FY 2016 New locally-developed product targeted to the highest volume market segment
The Housing Company (President: Teiji Kouge) of SEKISUI CHEMICAL CO., LTD. (President: Naofumi Negishi), which has been operating its housing business in Thailand since 2009, has completed construction of a new modular house factory located approximately 80 km north of Bangkok. It boasts an annual production capacity of 1,000 houses. The completion ceremony was held on March 6, 2013.
With the completion of the new mass-production factory, the Housing Company starts full-scale operation of its housing business in Thailand. Taking this opportunity, a new product for the highest volume market segment in Thailand was developed and will be launched on March 14, 2013.
In partnership with SCG Building Materials Co., Ltd., a subsidiary of the Siam Cement Group, one of Thailand's largest conglomerates, our company established a Thai housing production company (SEKISUI-SCG INDUSTRY CO., LTD.) as well as a sales company (SCG-SEKISUI SALES CO., LTD.). The structure of this joint venture is unique in that we deploy the business model we have established in Japan to conduct consistent planning, development, sale, production, construction, and after-sales service for industrialized housing together with a local business partner.
In the future, we are planning to more deeply penetrate the Thai housing market and enter markets in neighboring countries. Regarding the new factory as an Asian "mother factory," we aim to produce housing modules and materials for neighboring countries.

Thai Factory Overview (SEKISUI-SCG INDUSTRY CO., LTD.)

1. Site:Saraburi Industrial Park, approximately 80 km north of Bangkok, Thailand 2. Site area:150,000 sq. m. 3. Factory building:32,400 sq. m. (assembly lines, exterior wall assembly lines) 4. Office building:3,600 sq. m. (contains a cafeteria) 5. Production capacity:1,000 houses annually 6. Production plan:FY2014: 500 houses, FY 2016: 1,000 houses 7. Investment amount:5 billion yen 8. Number of factory employees:140 9. Initiation of construction:Nov. 2011 10. Completion of construction:Mar. 2013

1. The Thai factory features cutting-edge equipment
The Thai factory is our first overseas factory for local production and features state-of-the-art technology such as welding robots. It boasts an annual production capacity of 1000 houses, which equals or surpasses our factories in Japan.
In addition, the factory includes a second-floor walkway that will enable us to host factory tours to increase awareness of our industrialized housing production.

<Inside the Assembly Factory> 2. Overview of joint venture
SCG Building Materials Co., Ltd. (hereinafter SCGM), our partner in the Thai housing business, is a subsidiary of the Siam Cement Group, one of the largest conglomerates in Thailand. SCGM markets roofing materials, exterior wall materials, interior materials, residential equipment and other building materials. Its annual sales totaled 41.3 billion baht in FY 2012.
In September 2009, SCGM and SEKISUI CHEMICAL established SCG-SEKISUI SALES CO., LTD. (financed 51% by SCGM and 49% by SEKISUI) to manage the sales of modular houses and SEKISUI-SCG INDUSTRY CO., LTD. (financed 51% by SEKISUI and 49% by SCGM) to handle production of modular houses.

3. Activities in the Thai housing business

September 2008:	Thai business project initiated.
July 2009:	First Thai model house completed.
September 2009:	Two joint venture companies for the production and sale of housing were established.
November 2009:	Temporary factory began operations.
June 2011:	Model houses were opened at the Crystal Design Center in Bangkok.
July 2011:	Investment of a total of 5 billion yen for equipment was decided in order to fully expand the Thai housing business.
October 2011:	Construction of new factory was initiated.
March 2013:	Construction of new factory was completed.
March 2013:	Development and sale of a new product targeting the highest volume market segment was conducted.

4. New locally-developed product for the highest volume market segment
To enhance the Thai housing business, a new product for the highest volume market segment was developed for the launch of the newly constructed factory. The new product was developed jointly by Japanese and Thai employees utilizing knowledge gained from test marketing conducted in and around Bangkok.
<Characteristics>

Based on the concept of Sekisui Heim:
(1)	A structure well suited to the weather and climate of Thailand.
(2)	High air tightness that enables reduction of energy costs.
(3)	Modular baths rarely seen in Thailand.
(4)	On-site labor reduced to the bare minimum
	--- realization of low cost through limiting plan options

<Sales price> From 200,000 yen for a 3.3 sq. m. floor space.
<Sales plan> 250 houses in FY 2014

Representative image of a new product for the highest volume market segment

Completion ceremony

<Reference> (Production joint venture)
Overview of SEKISUI-SCG INDUSTRY CO., LTD.

Business content:	Manufacture of modular house
Investment ratio:	Sekisui Chemical 51%, SCGM 49%
Company headquarters:	Bangkok, Thailand
Number of employees:	140

(Sales joint venture)
Overview of SCG-SEKISUI SALES CO., LTD.

Business content:	Modular house distribution and construction, and after-sales services
Investment ratio:	Sekisui Chemical 49%, SCGM 51%
Company headquarters:	Bangkok, Thailand
Number of employees:	149

Overview of Siam Cement Group (SCG)

Business content:	Five main businesses --- chemicals, paper, cement, building materials and distribution
Company headquarters:	Bangkok, Thailand
Sales:	407,601 million baht in FY 2012 = approximately 1.2 trillion yen (calculated at a 1 baht = 3 yen exchange rate)
Number of employees:	38,000

Overview of SCG Building Materials Co., Ltd. (SCGM)

Business content:	Roofing materials, ceiling materials, wall materials, flooring materials, ceramic tile, sanitary ceramics, and other building materials
Company headquarters:	Bangkok, Thailand
Sales:	41,340 million baht in FY 2012 = 124 billion yen (calculated at a 1 baht = 3 yen exchange rate)
Number of employees:	16,647

Press Contact ■SEKISUI CHEMICAL CO., LTD. Housing Company, Technology Department, International Business Promotion Fax: +81-3-5521-0725 Housing Company, Public Relations & External Relations Department Fax: +81-3-5521-0725 Corporate Communication Department, Public Relations Group Fax: +81-3-5521-0510

Disclaimer This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.