Ube to Expand Polycarbonate Diol Production in Spain

June 24, 2010

TOKYO, June 24, 2010 _ Ube Industries, Ltd. today announced that its Spain-based subsidiary, Ube Chemical Europe S.A., will open a second production line for polycarbonate diol (PCD) in response to rising global demand. The second production line will increase the production capacity in Spain by 3,000 tonnes annually, and is scheduled to be brought online in January 2012.

Polycarbonate diol is one of the core products of Ube Industries in the fine chemicals segment, and is mainly used as a polyol component for the principal raw materials in polyurethane. In comparison with traditional polyurethanes that are based on polyester and polyether, PCD-based polyurethanes offer many advantages including excellent heat resistance, hydrolysis resistance, oil resistance, and weather resistance. Demand for PCD-based polyurethanes is growing rapidly based on its excellent functionality and durability. Notably, there has been a sharp rise in demand for automotive interior applications such as for seats, dashboards and door interior panels, and for exterior paints in second coat applications and as an overcoat base. At the same time, PCD-based polyurethane is increasingly favored as a new high-performance material for use in a wide range of fields including for electronic materials.

There is also growing demand for PCD as a raw material for environmental water-based paints that use polyurethane dispersion (PUD) technology, which contain no solvents and fill a need amid increasingly stricter regulation of volatile organic compounds (VOCs). Ube Industries projects that demand for PCD in environmental water-based paints will continue to grow in the future.

Ube Industries manufacturers PCD in Japan and Spain, as part of a global supply framework. In addition, Ube Industries manufactures the principal ingredients 1,6-hexanediol and dimethyl carboxylate (DMC) used in PCD, to offer a cost competitive advantage over other manufacturers. The completion of the second production line in Spain will result in an annual production capacity of 2,000 tonnes and 6,000 tonnes respectively in Japan and Spain, effectively making Ube Industries the largest manufacturer of PCD in the world.

In addition to increasing the production capacity for PCD, Ube Industries will focus on developing new grades of PCD that meet the needs of customers, in order to strengthen the Company's position as the world's No. 1 manufacturer of PCD and a driving force in the market.

Company Data for Ube Chemical Europe S.A.

Location Castellon , Spain
Business Description Manufacturing and sales of caprolactam, ammonium sulfate, and fine chemicals
Established July 1967
Capital Stock 34.265 million Euros
Shareholder UBE Chemical Europe S.A. (100%)( UBE Chemical Europe is a wholly-owned subsidiary of Ube Industries, Ltd.)
President and CEO Ricardo Lopez


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