TOKYO, September 25, 2008_ Ube Industries, Ltd. today announced that it has finalized plans to build a new production facility for 1,6-hexanediol (1,6-HDL) in Rayong, Thailand.
A local subsidiary to oversee the manufacturing and marketing of 1,6-HDL was established on November 2007. And the new subsidiary was named Ube Fine Chemicals (Asia) Co., Ltd. Construction of the new production facilities will begin in January 2009 with production expected to go online in early 2011. The new production facilities will be built on the existing site owned by the Ube Industries Group in Rayong, and will have an annual production capacity of 6,000 tons including co-production of 1,5-pentanediol (1,5-PDL). Ube Industries will invest several billion yen to build the new production facilities, which will generate an estimated 1.3 billion bahts in annual net sales assuming full production.
1,6-HDL is a core product of the fine chemicals business of Ube Industries. The properties of 1,6-HDL make it suited for use as a raw material in adhesives and for high quality and high performance polyesters and polyurethane resins. There is also growing demand today for 1,6-HDL used in UV curable coating materials that are low in environmental impact. Global demand for 1,6-HDL is growing at a rate of 5-8% annually with growth highest in the Asia market (including China), where demand is growing at a rate of more than 10% annually. The extremely tight supply and demand situation that exists today for 1,6-HDL is anticipated to continue into the foreseeable future.
Ube Industries is one of three major players in the global market for 1,6-HDL, along with BASF and LANXESS, both of Germany. Ube Industries already manufactures 1,6-HDL at three production bases in Sakai City and Ube City, both in Japan, and Castellon, Spain.
The new production facility in Thailand will better position Ube Industries to meet surging demand for 1,6-HDL in the Asia market, while further solidifying the company's position in the global market.
Ube Industries currently operates a number of production facilities in Thailand that produce steady output of caprolactam, nylon and synthetic rubber. The production facilities for 1,6-HDL will be the first fine chemicals product for Ube Industries to manufacture in Thailand, reflecting a strategy to strengthen the company's high added value specialty chemicals and products business. The newly established subsidiary will eventually grow to become a cornerstone of Ube Industries' strategy for the fine chemicals business in Asia. The location of the new 1,6-HDL production facilities in Thailand offers a number of advantages for the Ube Industries Group, through its close proximity to leading customers in Asia and the ability to draw on supplies of main ingredients and utilities from adjacent Group-owned production facilities, and by enabling the sharing of services such as maintenance and administrative functions.
Ube Industries also manufactures polycarbonate diol (PCD), a main ingredient of 1,6-HDL, from production bases in Japan and Spain. In addition, Ube Industries plans to launch full-scale production of functional environmental coating materials based on water-borne polyurethane dispersion (PUD) technology in Japan, and launch production of similar derivative products in Thailand in the future.
| Address | Shared with Thai Caprolactam Pcl. (a consolidated subsidiary of Ube Industries, Ltd.) of Rayong, Thailand |
|---|---|
| President and Representative Director | Charunya Phichitkul Managing Executive Officer of Ube Industries, Ltd., President of Thai Caprolactam Public Co., Ltd., Ube Nylon (Thailand) Ltd. and Thai Synthetic Rubbers Co., Ltd. |
| Business Description | Manufacturing and marketing of fine chemicals |
| Date of Establishment | October 2007 |
| Capitalization | 500 million bahts (provisional) |
| Shareholder | Ube Industries, Ltd. (100%) |
| Estimated Start of Production | Early 2011 |
| Production Items | 1,6-HDL, 1,5-PDL |
| Fiscal Year | January 1 to December 31 |
