Expansion of capacity for spunbond in Thailand

May 14, 2014
Asahi Kasei Fibers Corp.

Asahi Kasei Fibers will expand production capacity for spunbond nonwovens in Thailand at its subsidiary Asahi Kasei Spunbond (Thailand) Co., Ltd. (AKST). AKST will add a new production line of 20,000 tons/year capacity which, combined with its existing production line, will double its capacity for spunbond nonwovens to 40,000 tons/year.

Background

Since beginning its spunbond business in 1973, Asahi Kasei Fibers has supplied Eltas™ spunbond for use in a wide variety of applications including disposable diapers and other hygienic products, automotive and other industrial applications, and general consumer products. Asahi Kasei Fibers has expanded its spunbond business with two production sites in Japan (Moriyama, Shiga, and Nobeoka, Miyazaki) as well as AKST.

AKST began operation in 2012 as a base for local production in Thailand to meet growing demand for spunbond for diaper applications in Asia. The market in Asia not only continues to grow in volume, but also is increasingly marked by more sophisticated demand for higher product performance and quality, even as price competition intensifies. The expanded production capacity based on technology of Asahi Kasei Fibers for competitive production of high-quality spunbond will enable AKST to meet these needs.

Asahi Kasei Fibers will continue to respond to customer needs and enhance its infrastructure for stable supply in coordination with Japanese diaper manufacturers that are developing overseas markets.

Outline of the capacity expansion

Location:   Saha Group Industrial Park – Sriracha, Chonburi Province, Thailand
Product:   Polypropylene (PP) spunbond
Investment:   Approximately ¥5 billion
Capacity:   20,000 tons/year (total increasing to 40,000 tons/year)
Groundbreaking:   June 2014
Start-up:   November 2015 (scheduled)

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