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China: Plastic Compounds Asahi Kasei to Construct New Plant for Plastic Compounds in China

Editor: Alexander Stark

Asahi Kasei has announced the construction of a new plant for the manufacture of plastic compounds in Changshu, Jiangsu, China.

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Asahi Kasei is advancing a strategic global expansion of its engineering plastics business.
Asahi Kasei is advancing a strategic global expansion of its engineering plastics business.
(Source: Asahi Kasei)

Jinagsu/China — According to the manufacturer, the new plant in Jiangsu will reinforce their ability to ensure stable supply to meet both growing demand and heightening customer requirements in China, as part of an ongoing effort to enhance its global supply capability.

The plant with a planned capacity of 28,000 tons per year will amongst others produce Thermylene PP, Leona PA66, and other plastic compounds. Start-up is planned for early 2020.

Under its “Cs for Tomorrow 2018” medium-term management initiative, the company is advancing a strategic global expansion of its engineering plastics business in the Material sector centered on automotive applications.

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The company currently has plastic compounds manufacturing and sales facilities in Japan, China, Thailand, Singapore, the United States, Mexico, and Germany.

Growing Market in China

Automobile production in China reached a record high in 2016, and is projected to continue to rise substantially. As plastic compounds enable vehicle weight to be reduced by substituting for metal parts, further impetus for demand growth is driven by heightening environmental awareness and tightening environmental regulations.

The company announced that it will continue to examine additional avenues for expanding their plastic compounds manufacturing network in China, including the possibility of toll compounding.

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