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The article discusses the contention of Japanese fine chemicals makers to further their business through outsourcing. Though outsourcing of drug ingredients rises, still its drug companies have kept to their conservative ways. Another is the restructuring at some drug companies that creates separate manufacturing subsidiaries. These can be attributed to the regulation of Japan's Pharmaceutical Affairs Law to market and manufacture new drugs just like U.S. Food & Drug Administration.

Focuses on the status of pharmaceutical fine chemicals outsourcing in Japan. Details on the market for the fine chemical makers; Changes to Japan's Pharmaceutical Affairs Law; Ability of the Japanese pharmaceutical industry to evaluate drug candidates.

Reports the production technology of Sumitomo chemical propylene oxide plant in Japan. Application of the chlorohydrin process; Evaluation of patents involving cumene instead of isobutane or ethylbenzene; Effect on the conversion with a proprietary titanium-based catalyst.

The article focuses on the issue concerning rumor that Japan-based Mitsubishi Chemical Holdings Corp. is negotiating to acquire Mitsubishi Rayon Co. Ltd. It notes that both companies have just formed separate joint ventures, the Mitsubishi Rayon with Saudi Basic Industries Corp. (SABIC) and Mitsubishi Chemical with two other Japanese firms. It notes that both the deals are overshadowed by the reports on acquisition which have not been confirmed or denied by both companies.