04 February 2013 04:38 [Source: ICIS news]
By Nurluqman Suratman
(Adds details in paragraphs 8-11)
SINGAPORE (ICIS)--Japan’s Teijin Chemicals and South Korean producer SK Chemicals are establishing a joint venture in July this year to build a new polyphenylene sulfide (PPS) resins plant in Ulsan, Teijin said on Monday.
The new plant will begin operations with a PPS resin annual production capacity of 12,000 tonnes/year starting in April 2015, it said in a statement.
The plant’s capacity is expected to be boosted to 20,000 tonnes/year “as demand grows”, it said.
The joint venture, in which Teijin Chemicals will hold a 34% share and SK Chemicals the remaining 66%, will develop, produce and distribute PPS resins and compounds, the company said.
“The joint venture will pursue global markets, with a special focus on the fast-growing Asian region, aiming to become a world leader in PPS resin and compounds,” it said.
PPS resin is used for parts surrounding vehicle engines and motors, electrical components, connectors and sockets, according to Teijin.
“The demand for PPS resin is expected to grow in line with the increasing popularity of electric and hybrid vehicles and the ongoing expansion of electronics markets in emerging countries,” the company added.
The global PPS market is projected to grow by over 7% on average annually through to 2020, according to an earlier statement by SK Chemicals.
“In particular, as the automobile market is actively working to develop and apply more PPS in hybrid automobiles and e-cars [electric cars] for the production of lighter automobiles, demand for compounds is forecast to increase from 50,000 tonnes in 2011 to 100,000 tonnes in 2019 in the automobile business alone,” SK Chemicals said.
According to Teijin, its tie-up with SK Chemicals will allow the company to expand its range of resin products and create new value-added solutions, particularly in the automotive and electronics materials sectors.
Teijin is also aiming to enhance its plastic solutions through synergies with SK Chemicals and their PPS joint venture and is aiming to expand into other fields, including bio-polycarbonate and polycarbonate copolymers.
Teijin and SK Chemicals project a global market share of 20% by 2020 and annual revenues of $320m (€234m) in the fiscal year of 2024.
($1 = €0.73)Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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