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| December 7, 2006 |
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| Teijin Group Boosts China Production Capacity of the Panlite® Polycarbonate Resin |
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| Teijin Chemicals Ltd. |
Teijin Chemicals Ltd., the core company of the Teijin Group for the plastics business, has decided to add a third production line at Teijin Polycarbonate China Ltd., its wholly owned subsidiary, in response to growing demand for polycarbonate (PC) resins in China.
Teijin Chemicals Group achieved an industry first when it launched its initial production line in April 2005, with annual capacity of 50,000 tons. A second line with the same annual production capacity of 50,000 tons is to start commercial operation by year-end.
With the decision to add a third production line, dedicated to industrial-use resins, annual output will rise 60,000 tons, taking total Panlite® production capacity in China to 160,000 tons.
The total annual capacity of Teijin Chemicals Group, which also has production bases in Japan, Singapore and China, will reach 480,000 tons. This would secure the Group's position as the leader in this industry in Asia, while laying an even more solid business foundation for future development.
Details of the expansion are as follows.
1. Background to Expansion
| (1) |
Global demand for PC resin is expected to continue growing at an annual rate of about 7%. Asia is a center of this demand, with growth of 10% expected. In China, growth is particularly robust at 14%. |
| (2) |
The growth in demand in China is led principally by compound products (high performance materials that combine PC resins with, for example, reinforcing materials, flame retardants and other polymers) used with electric, electronic and office automation equipment, with even greater demand growth expected for automobiles. |
| (3) |
Teijin Chemicals Group has planned the expansion of processed products, including compounds, as one of the major strategies in its mid-term business plan, as these products have high added value and are not as susceptible to violent fluctuations in prices. The Group has been bolstering its ability to supply compound products in China and the rest of Asia, to keep pace with the business development of its customers. |
| (4) |
Teijin Chemicals Group already has a plant for compound products in Shanghai, with annual production capacity of 43,000 tons. This facility has been operating at full capacity for some time, and capacity expansion is planned to reach 63,000 tons by December 2007. |
| (5) |
In addition, the Technical Center was established in September 2005 on the premises of the compounding plant, to offer prompt technological support to customers. |
| (6) |
The third production line to be established will be dedicated to industrial-use resins, responding to growing demand for these compound products. |
2. Details of Expansion
| (1) Location: |
Teijin Polycarbonate China Ltd.,
No.888 Yashan West Road, Zhaupu, Development Zone,
Jiaxing City, Zhejang Province, PRC |
| (2) Production capacity: |
60,000 tons per year |
| (3) CAPEX: |
11 billion yen |
| (4) Start of construction: |
August 2007 |
| (5) Start of commercial production: |
March 2009 |
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Information in the press releases is current on the date of the announcement.
It is subject to change without prior notice.
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