Asahi Chemical Industry Co., Ltd. (“Asahi
Chemical”; Head Office at Chiyoda-ku, Tokyo; President,
Kazumoto Yamamoto) and Mitsubishi Gas Chemical Co., Inc. (“MGC”;
Head Office at Chiyoda-ku, Tokyo; President, Akira Ohira)
have agreed to establish a joint venture company in Singapore
for the construction and operation of a new facility for production
of PPE (polyphenylene ether) powder.
In conjunction with new facilities to be
constructed at the same location by Asahi Chemical for 2,6-xylenol
and modified PPE resin (mPPE), the PPE powder facility will
constitute a key part of a major new base in Singapore for
the integrated production of mPPE from raw materials to product
resin. From this production base, Asahi Chemical will also
conduct the sales of 2,6-xylenol, the starting material for
PPE powder, as well as the mPPE produced from PPE powder at
this facility.
Strategic role and objectives
Asahi Chemical. With a current annual
mPPE production capacity of 35,000 metric tons at its plant
at Sodegaura in Chiba Prefecture, Asahi Chemical is after
GE of the U.S.A. the world's second largest mPPE manufacturer.
Particularly in Asia, the demand for mPPE is growing in applications
related to the rapidly expanding production of IT equipment
and devices. At the same time, the accelerating trend in Japan
toward relocation to offshore sites in Asia by the affiliates
of Japanese manufacturers is creating a growing need for Asahi
Chemical to provide a stable, timely supply of mPPE and a
closely coordinated applications development configuration
for these mPPE users. The new integrated mPPE production base
in Singapore will meet these requirements.
For Asahi Chemical, the establishment of
the Singapore mPPE production base is a second key element,
following its recent acquisition of the compounded resins
operations of Nippon Steel Chemical Company in North America
and Europe, for the strengthening and expansion of its high
performance plastics and compounds operations as a strategic
competitive-superiority business sector under the corporate
mid-range ISHIN2000 program of reformation and growth.
MGC. With an annual production capacity
of 10,000 metric tons in terms of mPPE at its Yokkaichi Plant
as an integrated facility for production from monomer to PPE
powder, and with the related production and sales of mPPE
by Mitsubishi Engineering-Plastics Corporation, MGC is strongly
positioned as the worlds third largest manufacturer of PPE
powder from the monomer, after Asahi Chemical.
For MGC, the joint establishment of the production
facility in Singapore is part of the corporate program for
the expansion of its engineering plastics operations as a
high-priority corporate business sector, in accordance with
the corporate concept of Selection and Concentration as a
central element of the corporate mid-range MGC SHINKA21
program.
Production Facility Summary
| Production facility |
Integrated production facility for
mPPE from basic raw materials |
| Production capacity |
PPE powder: 30,000 MT/yr |
| Location |
Jurong Island, Singapore |
| Total investment |
Approx. ¥12 billion |
| Construction schedule |
Groundbreaking: Spring
2001
Completion: October 2002
|
Production Base – Operation
2,6-xylenol and mPPE
Production and sales by wholly-owned subsidiary of Asahi Chemical Group to be established for this purpose.
Subsidiary
- Capitalization: US$21.5
million
- Company name, representatives, other
particulars: To be decided prior to groundbreaking.
PPE powder
Production by joint venture company to be established by Asahi Chemical and MGC Groups.
Joint venture company
- Capitalization: US$35 million
- Shareholders: 70%, Asahi
Chemical Group; 30%, MGC Group
- Company name, representatives, other
particulars: To be decided prior to groundbreaking.
Allotment of PPE powder: To parent companies, in proportion to investment.
| Production capacity (MT/yr) |
Asahi Chemical |
MGC |
| PPE powder |
21,000 |
9,000
|
| Converted to mPPE |
48,000 |
21,000 |
|
