TOKYO (Aug. 31, 1:50 p.m. ET) — Japanese engineering plastics supplier Polyplastics Co. Ltd. is expanding in Malaysia, China and Taiwan.
The Tokyo-based company said it is building a 90,000 metric ton per year Duracon acetal resin plant in Kuantan, on the east coast of peninsular Malaysia. The plant is scheduled to be completed by October 2013 and put into operation early 2014.
Polyplastics has four acetal production bases, in Fuji, Japan; Kaohsiung, Taiwan; Nantong, China; and Kuantan. The new plant will raise the company's total output to 290,000 metric tons per year.
The company also plans to increase its compounding capacity, with an aim of strengthening its position in China. The projects include:
c Increasing polybutylene terephthalate compounding capacity in Kaohsiung from 14,000 metric tons per year up to 35,000 metric tons per year. The expansion is scheduled to be completed in January.
c Establishing a new compounding company at the PTM Engineering Plastics (Nantong) Co. Ltd. plant in Nantong, Jiangsu province. The plant will compound acetal, PBT, polyphenylene sulfide and liquid crystal polymers.
That plant will have a capacity of 9,000 metric tons per year, and will open in Fall 2013.
According to Polyplastics global acetal demand is currently about 900,000 metric tons per year, with more than 50 percent consumed in Asia. Asian demand is projected to grow between 4-8 percent annually, in line with y about 4 percent to 8 percent annually.
Acetal is used in automotive, home electric appliances and commodity applications.