Japan's Teijin, Korea's SK in JV to make 'green' PPS

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: February 4, 2013 1:11 pm ET
Updated: February 4, 2013 1:12 pm ET

Related to this story

Topics Materials, Automotive, Materials Suppliers

ULSAN, SOUTH KOREA -- Japan's Teijin Chemicals Ltd. said Feb. 4 it is investing in a joint venture with South Korea's SK Chemicals to make more environmentally friendly polyphenyline sulfide materials aimed at Asia's growing electric vehicle and electronics industries.

The joint venture, to be owned 66 percent by SK, will use the Korean company's technology to produce PPS resins and compounds without chlorine or sodium, which the companies said is both better for the environment and less corrosive on molds and metal parts than traditional PPS.

The companies plan to build a new 12,000 metric ton PPS plant in Ulsan, South Korea, to open in 2015, with annual capacity potentially increasing to 20,000 metric tons as demand grows, Teijin said in a statement.

The facility was first disclosed by Pangyo, South Korea-based SK Chemicals in December but it did not mention at that time any investment by Teijin or other companies. SK said it would invest 230 billion Korean won ($211 million).

Teijin and SK said they believe they can capture 20 percent of the global PPS market by 2020, and have annual sales of 350 billion won ($320 million) by 2024.

"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," Teijin said. "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 two companies said the chlorine-free grades of PPS can have environmental and performance advantages.

They said the chlorine and sodium in traditional PPS resin comes from both raw materials and byproducts, and remain in the resin where they can corrode molds and lead to deterioration of metal parts. PPS is often used in electrical components, connectors and sockets.

SK said its "green" production process will give it marketplace advantages.

"SK Chemicals' PPS is different from the production process built by existing businesses and does not require poisonous solvents," it said. "The PPS thus produced does not contain any chlorine unlike existing materials, which is a differentiating point."

The companies said chlorine can have a potentially harmful environmental impact if burned and noted pressure in North America and Europe to find alternatives.

"SK Chemicals plans to actively attack the PPS market based on such eco-friendliness," the company said. "The electric and electronic industries worldwide have begun to enforce strict regulations to control and inhibit the amounts of chlorine used on their products."

Independent of environmental claims, SK also noted general growth in PPS markets.

Greater use of PPS in making cars lighter and in the precision components specifically needed for electric and hybrid cars is expected to increase demand in the vehicle industry from 50,000 metric tons in 2011 to 100,000 tons in 2019, SK said.

The global market for PPS is expected to grow 7 percent a year through 2020, it said. It said the global market for PPS in 2012 was 94,000 metric tons.

A Teijin spokesperson said the two companies have been talking for about a year, well before SK first announced the Ulsan facility, but the Japanese company's investment was not finalized until now.


Comments

Japan's Teijin, Korea's SK in JV to make 'green' PPS

By Steve Toloken
Staff Reporter / Asia Bureau Chief

Published: February 4, 2013 1:11 pm ET
Updated: February 4, 2013 1:12 pm ET

Post Your Comments


Back to story


More stories

Private equity firm buys majority share of truck accessory maker

July 31, 2014 10:30 am ET

A majority share of Ann Arbor, Mich.-based truck accessory manufacturer Tectum Holdings Inc. has been acquired by Boston-based private equity firm TA ...    More

Image

Styrolution will open new production late 2014

July 30, 2014 12:54 pm ET

Germany-based styrenic materials group, Styrolution, has announced it is expanding its facility in Ludwigshafen, Germany.    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Magna expanding interiors site in Slovakia

July 29, 2014 1:47 pm ET

Magna International Inc. plans to nearly double the size of its manufacturing facility in Trnava, in western Slovakia, to accommodate new automotive...    More

Image

Carbon black supplier Orion begins trading on NYSE

July 29, 2014 11:29 am ET

Orion Engineered Carbons S.a.r.l. has priced the initial public offering of 19.5 million common shares at a price to the public of $18 per share.    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events