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Nippon Shokubai to expand acrylic acid plant in Indonesia

Nov '18
Nippon Shokubai to expand acrylic acid plant in Indonesia
Nippon Shokubai Company Ltd has announced that its board has given approval to the investment plan at PT Nippon Shokubai Indonesia (NSI), its subsidiary in Indonesia. The plan is to build acrylic acid plant with capacity of 100,000 metric tons per year, thus increasing Nippon Shokubai group’s global acrylic acid production capacity to 980,000 tons per year.

Acrylic acid (AA) is one of the core businesses of Nippon Shokubai. “There is a steady growth of demand as AA is a key material of superabsorbent polymer (SAP) and acrylate (AES) etc. In recent years, the demand and supply balance of AA is highly tight especially in Asia,” the Japanese company said in a press release.

Nippon Shokubai has decided on further expansion of AA to accommodate the demand and fulfill its duty to supply products. It took into consideration NSI’s location in Asia and the expectation for synergistic effect with the existing plant.

Post expansion, Nippon Shokubai will ensure more stable supply of AA, with 540,000 tons per year production capacity in Japan and another 440,000 tons per year capacity overseas.

NSI currently has AA production capacity of 140,000 tons per year at its existing plant site in Cilegon, Indonesia. With an investment of approximately $200 million, the capacity would be increased to 240,000 tons per year by March 2021, with commercial operation expected to begin in November 2021.

“The project makes no influence on the business results of the current fiscal year ending on March 31, 2019. As for the business results in future, after the operation begins in 2021, Nippon Shokubai will maintain and improve profitability by utilising the new plant effectively,” the release said. (RKS)

Fibre2Fashion News Desk – India

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