Asahi Kasei to construct a new plant for plastic compounds in China

August 23, 2017
Asahi Kasei Corp.

Asahi Kasei (China) Co., Ltd., a subsidiary of Asahi Kasei Corp., has decided to construct a new plant for the manufacture of plastic compounds1 in Changshu, Jiangsu, China.

Automobile production in China reached a record high in 2016, and is projected to continue to rise substantially. As plastic compounds enable vehicle weight to be reduced by substituting for metal parts, further impetus for demand growth is driven by heightening environmental awareness and tightening environmental regulations.

Under its “Cs for Tomorrow 2018” medium-term management initiative, Asahi Kasei is advancing a strategic global expansion of its engineering plastics business in the Material sector centered on automotive applications. Asahi Kasei currently has plastic compounds manufacturing and sales facilities in Japan, China, Thailand, Singapore, the United States, Mexico, and Germany. The new plant in Changshu will reinforce Asahi Kasei’s ability to ensure stable supply to meet both growing demand and heightening customer requirements in China, as part of an ongoing effort to enhance its global supply capability.

We will continue to examine additional avenues for the further optimization of our plastic compounds manufacturing network in China, including the possibility of toll compounding.

The company will continue to develop high-quality and high-performance products in accordance with market needs while focusing on measures to further strengthen its worldwide supply infrastructure.

  1. 1 Synthetic resin containing glass fiber, flame retardants, and other additives to provide additional performance characteristics.

Outline of the new plant

Company name
Asahi Kasei Plastics (Changshu) Co., Ltd.
Ichiro Toshimitsu
100% owned by Asahi Kasei (China) Co., Ltd.
Advanced Materials Industrial Park, Changshu, Jiangsu, China
28,000 tons/year
Main products
Thermylene™ PP, Leona™ PA66, and other plastic compounds
Scheduled start-up
Early 2020