Tokyo-based Mitsui Chemicals Inc. told the Nikken Business Daily that the company is expanding the compounding capacity of its subsidiary in Zhongshan, Guangdong province, in China.

The company plans to invest 1 billion yen on compounding equipment and raise the capacity of polypropylene compounds in Zhongshan by 25 percent, bringing the site capacity to 50,000 metric tons annually.

The compounds are mainly used for automotive bumpers and interior trim.

The expansion will be completed by summer 2009. Mitsui Chemicals announced in April its plans to increase the compounding capacity in Zhongshan to 42,000 metric tons by the end of 2009. It seems like the plan has been revised, with a larger investment and an earlier deadline set for China.

In the same announcement, the company mentioned a series of PP compounding capacity increases around the globe. By the end of 2009, it will add:

6,000 metric tons of capacity in Sydney, Ohio;

17,000 metric tons in Nashville, Tennessee;

5,000 metric tons in Aguascalientes, Mexico;

27,000 metric tons in Bangkok, Thailand;

and 15,000 metric tons in New Delhi, India.

The Nikken report also said that Mitsui is investigating the possibility of adding a plant in Europe. The company currently has manufacturing sites in Stirlingshire, Scotland, and Bad Sobernheim, Germany.

Posted by Nina Ying Sun on August 20, 2008 4:39 PM | Permalink