4 July 2014
Details
PPS compounds
are made by reinforcing heat-resistant
PPS polymer with glass fibers or inorganic fillers
to create a high-strength compound that
boasts outstanding heat and chemical resistance,
as well as excellent dimensional stability.
The new plant,
total investment in which will be approximately
\1.3 billion (Rmb77.3 million),
will be located within the site occupied by
wholly owned subsidiary
DIC Zhangjiagang Chemicals Co., Ltd.,
which produces synthetic resins, among others.
Annual production capacity will be 6,000 tons.
Construction is expected to begin
as soon as official building permits are secured,
and to be completed by the end of 2015.
While global demand for PPS compounds
continues to grow at 6%–8% annually,
annual growth in demand in the PRC,
which leads the world in automobile production,
is estimated at well above 10%.
Market expansion continues to encourage
leading global automobile components manufacturers
to set up operations in the PRC,
while the need to reduce foreign exchange and
logistics risks among others has spurred increased interest
in local procurement of PPS compounds
from such manufacturers.
Building a PPS compounds plant
in the PRC will thus position us
to respond to the needs of customers—
thereby facilitating our full-scale entry into
the local PPS compounds market—
and to expand our sales of these products.
Increasing market share in PRC to 35%
The construction of a new plant in Zhangjiagang
will increase our annual global production capacity
for PPS compounds to approximately 40,000 tons.
Looking ahead, we expect our share of
the PRC’s PPS compounds market,
currently 20%, to eventually surpass 35%,
further reinforcing our leading global market share.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
