TOKYO, April 27, 2007_Ube Industries, Ltd. today announced that it has decided on plans for an expansion of its production facilities for Ube Nylon 6 in Thailand. The expansion plans are driven by increased demand for Ube Nylon 6 in China and other parts of Asia. The expansion, which will add a further 50,000 tons/year in production capacity, will take place at Ube Nylon (Thailand) Ltd., a Thailand-based subsidiary of Ube Industries. The additional production capacity will go online in October 2009.
The major applications for Nylon 6 are for fibers and engineering plastics. Demand for Nylon 6 used in engineering plastics ranges from the extrusion market where it is used to produce food wrapping film, fishing line and fishnet monofilament, to the injection molding market where it is used for production of automotive parts. Ube Industries anticipates that demand for Nylon 6 in China and other parts of Asia will increase by nearly 10% annually moving forward. The expansion plans will position Ube Industries to capitalize on the increase in demand.
Ube Industries manufactures Ube Nylon 6 for the engineering plastics market, where it has gained an excellent quality reputation from users for heat resistances and resistance to oils, solvents and chemicals. Ube Nylon 6 is currently manufactured in three global locations located in Japan (Ube Chemical Factory, 60,000 tons/year) Thailand (25,000 tons/year) and Spain (20,000 tons/year), amounting to a global production capacity of 105,000 tons/year. Ube Industries is the second largest manufacturer of nylon in the world.
Thailand is positioned as a key base in the Asia region for Ube Industries' global plastics and chemicals business. In addition to Nylon 6, Ube Industries operates facilities for production of caprolactam and synthetic rubber in Thailand. Nylon 6 is manufactured from caprolactam, and Thai Caprolactam Public Co., Ltd., a subsidiary of Ube Industries, will supply caprolactam for production of Nylon 6.
Production facilities for Ube Nylon 6 at Ube Nylon (Thailand) Ltd.
