TOKYO (Oct. 11, 10:20 a.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 199 million-pound-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 in 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 639 million pounds per year.
The company also plans to increase its compounding capacity, with an aim of strengthening its position in China. The projects include:
* Increasing polybutylene terephthalate compounding capacity in Kaohsiung from 31 million pounds per year up to 77 million pounds per year. The expansion is scheduled to be completed in January.
* Establishing a new compounding company at the PTM Engineering Plastics (Nantong) Co. Ltd. plant in Nantong. The plant will compound acetal, PBT, polyphenylene sulfide and liquid-crystal polymers.
That plant will have a capacity of 20 million pounds per year, and will open in fall 2013.
According to Polyplastics, global acetal demand is currently about 2 billion pounds per year, with more than 50 percent consumed in Asia.
Asian demand is projected to grow between 4 percent and 8 percent annually.
Acetal is used in automotive, home electric appliances and commodity applications.