02 August 2011 10:53 [Source: ICIS news]
TOKYO (ICIS)--Japan-based chemical producer Nippon Shokubai plans to invest yen (Y) 14.5bn ($188m) to increase its acrylic acid and acrylic acid special esters capacity in order to meet growing global demand, the company said in a statement on Tuesday.
Nippon Shokubai will build an 80,000 tonne/year acrylic acid production facility at its Himeji plant in Japan’s Hyogo prefecture, where the company currently produces 460,000 tonnes/year of acrylic acid, according to Nippon Shokubai.
The move is in response to an increase in global demand for acrylic acid and superabsorbent polymer (SAP), the company said.
The new facility, which will cost Y11bn, is scheduled to be completed at the end of May 2013 and is expected to come on stream in August 2013, according to Nippon Shokubai.
After August 2013, Nippon Shokubai’s global acrylic acid capacity will be increased to 780,000 tonnes/year from 620,000 tonnes/year, the company said.
In addition, Nippon Shokubai plans to build a 20,000 tonne/year acrylic acid special esters facility at its Kawasaki plant in Kanagawa prefecture to add to its current acrylic acid special esters capacity of 40,000 tonnes/year produced at the Himeji plant, the company said.
Nippon Shokubai expects to spend Y3.5bn for the unit, it added.
The new unit at Kawasaki is scheduled to be completed at the end of September 2013 and start commercial production in October the same year, according to the statement by Nippon Shokubai.
Demand for acrylic acid special esters for automotive coatings is growing rapidly, Nippon Shokubai said.
The company also plans to build a new acrylic acid plant in Indonesia through its subsidiary Nippon Shokubai Indonesia (NSI) that is expected to start commercial operations at “around the same time” as the new facility at Himeji, a company source said over the phone.
($1 = Y77.08)
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