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 Automotive, Materials, 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

Image

Americhem beats weather woes at start of 2014 for good fiscal year

November 26, 2014 9:45 am ET

Gains from the automotive and construction markets provided a strong fiscal 2014 for Americhem Inc.    More

Image

PE prices drop for first time in two years, PP down 5 cents

November 26, 2014 10:22 am ET

North American polyethylene buyers might want to circle November 2014 in red on their calendars — since PE prices this month have fallen for...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla...    More

Image

Canada's Papp Plastics is eyeing big opportunities with JV in Mexico

November 24, 2014 4:11 pm ET

Canadian injection molder and turnkey solution provider Papp Plastics & Distributing Ltd. will open an $11 million to $12 million joint venture...    More

Image

Indiana injection molder PRD expands

November 24, 2014 1:56 pm ET

Automotive supplier PRD Inc. is expanding its manufacturing facility in Springville, Ind.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events