07 October 2013 06:00 [Source: ICIS news]
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SINGAPORE (ICIS)--Japan’s Teijin and South Korea’s SK Chemicals have started building their joint polyphenylene sulphide (PPS) resins plant in Ulsan, the Japanese firm said on Monday.
Construction of the 12,000 tonne/year PPS resins plant began on 1 October, Teijin said in a statement.
A joint venture firm called INITZ Co was set up – in which Teijin holds a 34% stake, with SK Chemicals owning 66% of the company – to operate the project.
The PPS resins plant’s capacity may be expanded eventually to 20,000 tonnes/year, SK Chemicals had said in February, when the ;proposed joint venture was first announced.
Demand for PPS resin, a super engineering plastic, is expected to grow in line with the increasing popularity of electric and hybrid vehicles and amid expanding electronics markets in emerging countries, according to Teijin.
INITZ will focus on customers mainly in fast-growing Asian markets and is aiming for annual sales of South Korean won (W) 300bn ($280m) by 2020.
Teijin’s produces high-performance fibres, such as aramid, as well as carbon fibers and composite, while SK Chemicals produces polyethylene terephthalate (PET) resins and polyester resins, among others.
($1 = W1,071)Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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