Nippon Shokubai announces plans to expand its Indonesian subsidiary’s super absorbent polymer (SAP) plant

[ad_1]

Nippon Shokubai Co., Ltd.

OSAKA, Japan (ANTARA/Kyodo JBN) – Nippon Shokubai Co., Ltd. (hereinafter referred to as “Nippon Shokubai”), headquartered in Osaka, Japan, hereby announces that the company has decided to approve the investment plan of PT. NIPPON SHOKUBAI INDONESIA (hereinafter referred to as “NSI”) at its board of directors meeting held on July 30, 2024. The plan is to build a super absorbent polymer (hereinafter referred to as “SAP”) plant with an annual production capacity of 50,000 metric tons (hereinafter referred to as “t/y”), as follows.

Logo: https://cdn.kyodonewsprwire.jp/prwfile/release/M104641/202407314414/_prw_PI2fl_e6rk0zC2.png

1. Investment background

SAP is one of Nippon Shokubai’s core products and as a key material for diapers worldwide, its demand has been growing steadily, especially in regions where the population is expected to grow rapidly.

The results of the study show that Nippon Shokubai has decided to expand NSI’s production capacity, as NSI has already expanded its acrylic acid (hereinafter referred to as “AA”) production facilities by 100,000 tons/year (total AA capacity after expansion is 240,000 tons/year), and can use its vertically integrated production advantages from AA to SAP to meet the strong demand growth in Asia, and look forward to synergies with existing plants. On the other hand, for the relatively low productivity of old SAP production facilities in Himeji, Japan, Nippon Shokubai will consider closing some of them to optimize Nippon Shokubai’s future global SAP supply network.

2. Investment characteristics

Production capacity: SAP 50,000 tons/year

(Current capacity is 90,000 tons/year, and the total capacity after completion is 140,000 tons/year)

Schedule: Mechanical completion – January 2027

Commercial operation – July 2027

Location: NSI existing factory

Investment amount: Approximately US$110 million

3. NSI Company Overview

Date of establishment: August 1996

Location: Cilegon, Banten Province, Indonesia (Headquarters and Factory)

Representative: Mr. Shinichiro Yoshimoto, Chairman

Business activities: Manufacture and sales of acrylic acid, acrylic esters, and super absorbent polymers