Asahi Kasei Corp is expanding production of plastic compounds in China, the Tokyo-based speciality chemicals company announced Aug. 23.
Asahi Kasei (China) will build a new plant to manufacture the compounds — Thermylene brand polypropylene, Leona nylon 6/6, and other plastic compounds — in Changshu.
Start-up for the plant with a capacity of 28,000 metric tons per year is set for early 2020.
The move is in response to growing auto production in China, which reached a record high in 2016, and is projected to continue to rise.
Under its “Cs for Tomorrow 2018” medium-term management initiative, Asahi Kasei is advancing a strategic global expansion of its engineering plastics business in the material sector centered on auto applications.
Asahi Kasei currently has plastic compounds manufacturing and sales facilities in Japan, China, Thailand, Singapore, the United States, Mexico and Germany.
The Japanese supplier said it would continue to examine additional avenues for optimization of its plastic compounds manufacturing network in China, including the possibility of toll compounding.