Teijin to expand Shanghai PC unit on Asia demand

18 June 2008 13:58  [Source: ICIS news]

TOKYO (ICIS news)--Teijin Chemicals plans to expand polycarbonate (PC) compounds capacity at its Shanghai subsidiary by 39,000 tonnes/year to 102,000 tonnes/year due to increased demand in China and elsewhere in Asia, a spokesman from its parent Teijin said on Wednesday.

Construction of the yen (Y) 900m ($8.3m) new facility, to be added to the existing unit, was expected to start in July 2008 and completed by August 2009, the spokesman said.

After the expansion, the plant would be the world’s biggest-scale compounding facility, according to Teijin.

PC compound products had a wide usage in China and southeast Asia, ranging from electric, electronic, office automation and automotive applications, and demand was expected to further increase, Teijin said in a statement.

The company aimed to expand the sales of its high value-added PC compounds, it added, noting Teijin Chemicals had the world’s third largest share of PC compounds and the number one share in Asia.

The producer completed a 20,000 tonne/year expansion of the same PC compounding plant in December 2007 to increase capacity to 63,000 tonnes/year, according to Teijin.

Teijin Chemicals was also mulling an expansion of a para-aramid fibre called Technora by building a new unit due to robust demand, the spokesman said.

He declined to state the location of the unit, but said it may be in Matsuyama, Ehime prefecture, where the company currently produced Technora.

Other details such as the cost, capacity and the start-up date were undecided, and the company was hoping to make a decision "within the next six months or so”, the spokesman added.

Technora is used as a reinforcement agent of rubber and construction materials.

($1 = Y108)

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By: Tomomi Yokomura
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