2013 Exhibitions
Teijin Chemicals Ltd., the core company of the Teijin Group’s resin and plastic processing business will be collaborating with South Korean chemical producer SK Chemicals for a joint venture to develop, produce and distribute polyphenylene sulfide (PPS) resins and compounds in July.
PPS resin, a super engineering plastic, has excellent thermal resistance, chemical resistance, mechanical strength and dimensional stability. It is suited for precision moulding and primarily is used for parts surrounding vehicle engines and motors, electrical components, connectors and sockets.
The venture is expected to supply value-added PPS compounds, given the combination of Teijin Chemicals’ extensive compounding technologies and SK Chemicals’ chlorine- or sodium-free PPS resin technology.
The joint venture, in which Teijin Chemicals will hold a 34% share and SK Chemicals the remaining 66%, will construct a PPS resin plant in Ulsan, South Korea. The plant will start with an initial PPS resin annual production capacity of 12,000 tonnes in the fiscal year commencing in April 2015, to target the global market especially focusing on the Asian region.
The partnership aims for a global market share of 20% by 2020 and annual sales of 350 billion KRW ( US$320 million) in fiscal 2024.
Capacity is expected to reach 20,000 tonnes as demand increases. An existing pilot plant will be utilised for market and application development until the new plant starts operating.
The demand for PPS resin is expected to grow in line with the increasing popularity of electric and hybrid vehicles and the ongoing expansion of electronics markets in emerging countries.
(PRA)
