ATLANTA, GA. December 01, 2005 -- ATLANTA- Georgia-Pacific Resins, Inc. (GPRI), a subsidiary of U.S.-based Georgia-Pacific Corp., and Kolon Chemical Co., Ltd. of Korea, today announced that they have reached an agreement in which GPRI will purchase an ownership stake in Kolon Chemical (Suzhou) Co Ltd, and become a shareholder partner. The agreement includes joint ownership of a state-of-the-art thermosetting resin manufacturing facility in Suzhou, located in the Jiangsu Province of China, near Shanghai.
The new joint venture, operating as Kolon GP Chemical (Suzhou) Co., Ltd., follows a strategic alliance entered into by Kolon and GPRI in December, 2003. Through the alliance, the companies increased their presence in the industrial resins markets in the United States, Brazil, China, Japanand Korea. Kolon began manufacturing phenolic resins at the Suzhoufacility in November, 2004, to serve the tire, automotive, electronics, insulation, and laminate industries.
“We consider Kolon to be a key technology partner and are very pleased to expand our relationship,” said Rick Urschel, President - GPRI. “This investment also enables us to have a production source in the rapidly growing Chinese market, where many of our customers now have a manufacturing presence, and where we are beginning to build a substantial presence.”
“We are very pleased to expand our relationship with GP, who holds a worldwide reputation” said Mr. Young-Ho Bae, President of Kolon Chemical in Korea. “Through this new joint venture, we can supply consistently high-quality and cost-effective products to customers. It will also enable GPRI to more easily access China-the most active and fastest-growing market in the world. In addition, our companies will have a more concrete relationship and expect to grow additional business in the future.”
Kolon Chemical Co., Ltd. was established in 1976 via the joint venture of Kolon Industries, Inc. and Nippon Petrochemical Co., Ltd. Kolon Chemical has the leading position in Korea’s specialty chemicals market with product lines such as hydrocarbon resins, super absorbent polymers, phenolic resins, and fine chemicals. Kolon Chemical’s parent company, the Kolon Group, was established in 1954, and today is a leading business in Korea. In addition to plastic and specialty chemicals, Kolon is also active in the synthetic yarn, fabric, industrial materials, film, electronic materials, membranes, and bioengineering markets. Kolon is one of the leading chemical groups in Koreawith total annual sales of approximately $3.4 billion and over 8,400 employees. For more information, visit www.kolon.co.kr.
Georgia-Pacific Resins is a leading supplier of thermosetting resins and chemicals used in building products, paper making and specialty industrial applications. It operates 15 chemical plants in the United States, two in Brazil, and one in both Chileand Argentina, as well as a joint venture in South Africa.
Georgia-Pacific, is one of the world’s leading manufacturers and marketers of tissue, packaging, paper, building products and related chemicals. With 2004 annual sales of approximately $20 billion, the company employs approximately 55,000 people at more than 300 locations in North Americaand Europe. Its familiar consumer tissue brands include Quilted Northern®, Angel Soft®, Brawny®, Sparkle®, Soft 'n Gentle®, Mardi Gras®, So-Dri®, and Vanity Fair®, as well as the Dixie® brand of disposable cups, plates and cutlery. For more information, visit www.gp.com.
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Caryn King (404) 652-4247
