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Ube Industries to Revise Price of Diol Products

April 24, 2012

TOKYO, April 24, 2012_ Ube Industries, Ltd., announced today that it will implement a price increase for diol products (1,6-hexanediol and 1,5-pentanediol) in Japan and other parts of Asia, effective for shipments on or after May 1, 2012. Ube Industries will initiate negotiations with its customers regarding the price increase. Even after Ube started operation of a new 1.6-hexanediol plant in Thailand in June 2011 with an annual production capacity of 6,000 tonnes, the pressure on supply and demand of diol products remains tight due to ever growing demand accompanied by the global increase of environmental awareness.

Minimum Price Increase for Diol Products

1,6-Hexanediol Customers in Japan Min. ¥60 per kg
  Customers in other parts of Asia Min. US$1.00 per kg
1,5-pentanediol Customers in Japan Min. ¥80 per kg
  Customers in other parts of Asia Min. US$1.00 per kg

Effective Date of Price Changes

Shipments on or after May 1, 2012

1,6-hexanediol is a core product that Ube Industries offers in the fine chemical segment. The properties of the product make it suitable for use in producing high-quality, high-performance polyesters, polyurethane resins, and adhesives. Demand for 1,6-hexanediol has grown in recent years for use in ultraviolet (UV) curable coating materials that are notable for their low environmental impact.

Global demand for 1,6-hexanediol has been growing by 5–8% annually, with markets in China and other Asian countries recording high rates of growth exceeding 10% annually. This strong pressure on supply and demand for 1,6-hexanediol is expected to continue in the future.

Ube Industries is the only Japanese manufacturer of 1,6-hexanediol, with a total annual production capacity of 20,000 tonnes from three production bases in Ube City (Yamaguchi Prefecture), Sakai City (Osaka Prefecture), and Spain, in addition to the new plant in Thailand, which commenced production in June 2011 with an annual capacity of 6,000 tonnes.

Contact

For inquiries please contact
  • Ube Industries, Ltd.
  • Investor Relations & Public Relations Department
  • Corporate Planning & Administration Office
  • Seavans North Building, 1-2-1 Shibaura, Minato-ku, Tokyo 105-8449
  • Phone : +81-3-5419-6110
  • Contact us by Internet.