Polychem to build PP compounds in India, Thailand

29 November 2007 11:27  [Source: ICIS news]

TOKYO (ICIS news)--Japan Polychem Corp plans to build units producing polypropylene (PP) compounds in India and Thailand for a total of yen (Y)1.6bn ($14.5m) due to an increase in demand from car and car parts makers, its parent Mitsubishi Chemical Co (MCC) said in a statement on Thursday.

 

Japan Polychem, MCC’s 100% subsidiary would build a 10,000 tonnes/year unit at the site of its 69.2% polyvinyl chloride (PVC) in Chon Buri, Thailand, MCC said.

 

The Y700m plant is scheduled to start commercial production in October 2008.

 

Meanwhile, a Y900m unit producing 15,000 tonnes/year of PP compounds, to be established in Rajasthan, India, was expected to come on stream by April 2009, the company said.

 

A number of automobile producers and car parts makers have been advancing to China, India and Thailand, and production and sales volume of cars continues to increase, said MCC.

 

With such globalisation in the automobile industry, stable supplies of global raw materials with the same qualities all around the world were desired by the manufacturers, the company said.

 

When these new units are built, the company would have production bases of PP compounds in Japan, India, Thailand, North America and China, MCC said.

 

It added the units in Beijing and Guangzhou, China, were being constructed.

 

However, the company did not state the capacity of either plant or when they would start commercial operations.

 

Meanwhile, the MCC group was building a new PP unit at its Kashima factory in Ibaraki prefecture, Japan, which was scheduled to come on line in April 2008, in order to ensure high quality PP feedstock, the company said.

 

According to previous ICIS news reports, the unit would produce 300,000 tonnes/year of PP.

 

($1  = Y109)
By: Tomomi Yokomura
+65 6780 4359

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