TOKYO, March 16, 2010 _ Ube Industries, Ltd. today announced it will implement a price increase for 1,6-hexanediol in Japan and other parts of Asia. The price increase is necessitated by sustained pressured on supply and demand of 1,6-hexanediol, combined with rising raw material and fuel prices. Ube Industries will initiate negotiations with its customers regarding the price increase.
|Customers in Japan||Min. ¥ 55 per kg|
|Customers in other parts of Asia||Min. US$0.60 per kg|
Shipments on or after April 1, 2010
1,6-hexanediol is a core product of Ube Industries offers in the fine chemical segment. The properties of 1,6-hexanediol make it suitable for use in producing high quality and high performance polyesters, polyurethane resins, and adhesive. 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. The 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 13,000 tonnes from three production bases in Ube City (Yamaguchi Prefecture), Sakai City (Osaka Prefecture) and Spain. The company is building a new plant in Thailand that is expected to commence production in May 2011 with an annual capacity of 6,000 tonnes.