Asahi Glass to boost caustic soda output in Indonesia

10 Aug '13

2 min read

The Japan-based Asahi Glass Co. Ltd. has announced that it will invest approximately 40 billion yen to significantly increase the production capacity of its Indonesian subsidiary PT Asahimas Chemical to meet growing demand for chlor-alkali products, such as caustic soda and vinyl chloride, in the Southeast Asia region.

In March 2013, Asahi Glass expanded its annual production capacity for caustic soda to nearly 500,000 tons. Now, the company is planning to further enhance its production facility for caustic soda by 40 percent to about 700,000 tons a year.

The company plans to start operation of the extended facility by the end of 2015.

Caustic soda is used in various water-treatment processes in the textile industry, as well as other industries.

By 2020, the demand for caustic soda is expected to expand by about 50 percent from the present level in the Southeast Asian region, where economies are projected to continue developing.

In Indonesia, where the production capacity is being increased, the demand for caustic soda is expected to grow much faster than the average growth rates in the region.

PT Asahimas Chemical, an Indonesian subsidiary of Asahi Glass, is one of the largest manufacturers of chlor-alkali products in Southeast Asia, conducting integrated production from caustic soda and chlorine to vinyl chloride.

The subsidiary currently accounts for more than 50 percent of Indonesia’s caustic soda market.

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