September 26, 2011

DIC Announces Plans to Increase the DIC Group’s Annual Global PPS Polymer Production Capacity by 5,500 Metric Tons – resulting in Global Capacity of over 19,000 Metric Tons

Tokyo, Japan—DIC Corporation has announced today that it will invest approximately 8.0 billion yen to build a new polyphenylene sulfide (PPS) polymer production line at wholly-owned subsidiary DIC EP Corp.’s Kashima Plant, located in Kamisu, Ibaraki. Upon completion, the slated increase in production capacity of the new line will be 5,500 metric tons.


Boasting outstanding temperature and chemical resistance, superior mechanical properties and dielectric properties has resulted in PPS becoming one of the world’s top engineering plastics. PPS polymer is generally reinforced with glass fiber or inorganic fillers and supplied in the form of PPS compounds, which are used primarily as molding materials. Annual global demand for PPS compounds is estimated at 73,000 tons (figure for the fiscal year ended March 31, 2011). The DIC Group has established integrated production capabilities for PPS compounds, encompassing all steps from polymer production to custom compounding, and is currently the world’s leading producer in terms of market share. Valued for their excellent heat resistance, strength, dimensional stability and chemical resistance, PPS compounds are used primarily in automotive, electrical/electronic and household equipment applications. Demand in all three market segments continues to expand. The DIC Group has also experienced a sharp increase in sales volume, which has risen more than 8% annually for the past 10 years.


In the automotive industry, the principal application for PPS compounds, increasingly sophisticated performance requirements—driven by demand for the hybrid and electric vehicles, and downsizing of conventional engines— has resulted in a dramatic increase in the amount of PPS compounds used per vehicle. In household equipment, PPS compounds are a popular alternative to metal for gas water boilers. They are also increasingly used in joints and valves for heat pump type hot water boilers, thanks to their superb heat and water resistance. DIC’s decision to increase its production capacity reflects its long-term commitment to grow and expand its PPS compounds business—which is expected to experience sales growth of 6%–8% annually. This decision to expand PPS production capacity also ensures that sufficient and stable supply will support the continued expansion of PPS programs in the global market.


The new production line is scheduled for completion in May/2013. Going forward, DIC is determined to capitalize on its expanded production capacity to further grow its PPS compound business - thereby reinforcing its leading global market share.

 

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