Fluorochemicals expansions: AGC to invest US$260 mn in capacity increase in Japan; Anupam Rasayan to pump in US$80 mn for three plants in India

Tokyo-headquartered Asahi Glass Co (AGC), a manufacturer of glass, chemicals and high-tech materials, has announced that the company has decided to increase its production capacity for fluorochemical products in order to respond to the strong demand, such as for semiconductor-related applications. The expansion will take place at AGC's Chiba Plant (Ichihara City, Chiba Prefecture, Japan), with operations scheduled to begin in the second quarter of 2025 and an investment of approximately 35 billion yen (around US$260 million).

Since fluorochemical products have excellent heat, weather, and chemical resistance, they are used in a wide range of industries, including semiconductors, aircraft, automobiles. Particularly, AGC says the technical characteristics of its products have been highly recognised in such fields as high-speed communication equipment, fuel cell vehicles, and hydrogen energy, where advanced characteristics and reliability are required. Based on this background, sales of AGC Group’s fluorochemical products have been steadily increasing in recent years, and in 2021, the company expanded its production capacity at its Kashima plant and Chiba plant.

The decision for further capacity expansion has been made in response to an expected significant growth in demand for fluorochemicals products, particularly in the semiconductor industry. AGC will continue to invest proactively in fluorochemical products, aiming to achieve sales of more than 200 billion yen in the Performance Chemicals business by 2024.

Meanwhile, Indian specialty chemicals major Anupam Rasayan India Limited recently signed a Memorandum of Understanding (MoU) with the Gujarat state government to invest Rs 670 crore (around US$80 million( to set up three new plants. The company said the new plants will come up at Jhagadia in Bharuch district and Sachin near Surat, and will be commissioned by 2025.

The upcoming plants will focus on manufacturing fluorochemicals to service the demands of existing and potential clients in the agrochemical, polymers and pharma sectors in the US, Europe and Japan.

Anand Desai, Managing Director, Anupam Rasayan India, said, “The investment is in line with our move to expand our operations and strengthen our manufacturing capabilities. The new units will bolster our growth prospects and allow us to diversify our product offering. We will introduce niche fluoro-derivatives on an exclusive basis for the relevant customers.”

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