FOSHAN, CHINA (Oct. 28, 1:30 p.m. ET) — Teijin DuPont Films is beefing up its China-based production of polyester film, part of the firm's strategy to expand its Asia regional market.
The China unit, DuPont Hongji Films Foshan Co., Ltd. (DPHJ) in Foshan, Guangdong province, is expanding its annual capacity from 50,000 metric tons to 77,000 tons.
It will acquire a new local site, initially to house two polyester film lines, one for thick film and the other for thin film.
The thick film line will include a production line relocated from a defunct U.S. plant in Florence, S.C., which permanently closed in February. It will be mainly used for the production of photovoltaic backsheet, with manufacturing to begin in the second half of 2012.
The thin film line will be newly constructed and mainly used for dry film resists and flat panel displays. Operation is scheduled to begin in 2013.
Teijin DuPont Films is a 50-50 joint venture of DuPont Co. and Teijin Ltd.
DPHJ is a 51-49 joint venture between Teijin DuPont Films China and Foshan-based film manufacturer FSPG Hi-Tech Co. Ltd.
Capital expenditure on the project will total about $78 million, Teijin said in an Oct. 28 new release.
FSPG announced last month an increase of registered capital for DPHJ, where FSPG added $15.9 million, and Teijin Films added $16.6 million.
The expansion will help DPHJ broaden its application areas, strengthen its competitiveness and ability to react to the market, and raise its profitability, FSPG said in a statement.