Nippon Shokubai Announces Indonesian Subsidiary's Plan to Expand Its Superabsorbent Polymer (SAP) Plant

OSAKA, Japan, Aug. 2, 2024 /PRNewswire/ — NIPPON SHOKUBAI CO., LTD. (hereinafter “Nippon Shokubai”) headquartered in Osaka, Japan, hereby announces that the company resolved, at its board meeting held on July 30, 2024, to give approval to an investment plan at PT. NIPPON SHOKUBAI INDONESIA (hereinafter “NSI”). The plan is to build a superabsorbent polymer (hereinafter “SAP”) plant capable of producing 50,000 metric tons per year (“t/y”), as follows.

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1. Background of investment

SAP, one of Nippon Shokubai’s core products, shows steady growth of demand as a key material for diapers globally, particularly in the regions where their populations are anticipated to increase rapidly.

As a result of the study, Nippon Shokubai decided to expand the capacity of NSI as it had already expanded its production facility of acrylic acid (hereinafter “AA”) by 100,000 t/y (total AA capacity after the expansion: 240,000 t/y) and can take advantage of its strength from the vertically integrated production from AA to SAP to meet the strong demand growth in the Asian region in anticipation of synergistic effects with the existing plant. On the other hand, for the old SAP production facilities with relatively low productivity in Himeji, Japan, Nippon Shokubai will consider stopping some of these facilities to optimize Nippon Shokubai’s global SAP supply network in future.

2. Feature of investment

Production capacity: SAP 50,000 t/y

(current capacity 90,000 t/y, total 140,000 t/y after completion)

Schedule: Mechanical completion — January 2027

Commercial operation — July 2027

Location: Existing plant site of NSI

Investment amount: Approx. 110 million USD

3. Corporate outline of NSI

Established: August 1996

Location: Cilegon, Banten Province, Republic of Indonesia (head office and plant)

Representative: Shinichiro Yoshimoto (Mr.) President Director

Description of business: Manufacture and sale of acrylic acid, acrylates, and superabsorbent polymers

Capital: 120 million USD (paid-in capital), 99.9% contributed by Nippon Shokubai

Number of employees: 448 (as of March 31, 2024)

Website: https://shokubai.co.id/

Photo: PT. NIPPON SHOKUBAI INDONESIA

https://cdn.kyodonewsprwire.jp/prwfile/release/M104641/202407314414/_prw_PI1fl_5OeBzfD7.jpg

Related release:

Inauguration Ceremony Held for a New Acrylic Acid Facility in Indonesia (May 24, 2023)

https://www.shokubai.co.jp/en/news/2023052412480/

About NIPPON SHOKUBAI CO., LTD.: https://kyodonewsprwire.jp/attach/202407314414-O1-bEqjgA2r.pdf

For more information: https://www.shokubai.co.jp/en

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