Mitsui Chemicals Co., Ltd. announced on May 30 that the company will continue to develop overseas automotive materials market, especially the European market.
President of Mitsui Chemicals Co., Ltd. Shirotin Tan announced that the company will invest 5 billion yen (about 45.5 million U.S. dollars) in the Chemelot Industrial Park in the province of Limburg in the southeastern Netherlands to build a new polypropylene resin plant for the production of bumpers. The new plant will have an annual production capacity of 30,000 tons, and is expected to be officially produced by June 2020. At the same time, the company will invest 18.4 million euros in the same area to set up a subsidiary engaged in the production and operation of polypropylene advanced composite materials. For the first time, the company will carry out production activities in Europe. Its products will be mainly sold to European car manufacturers.
According to reports, Mitsui Chemicals ranks second in the world in terms of sales of polypropylene resin. There are factories in seven countries including Japan, India and the United States. However, there is no direct business operation in Europe. Currently, it is mainly commissioned for production. With the intensification of vehicle weight reduction, European demand for high-performance resins with good heat resistance and impact resistance will increase significantly. It is a promising market and a key area for the company to further develop its business. The company believes that Only by investing equipment and technology in the European market can we achieve better results.
Mitsui Chemicals will continue to increase investment in other areas. The company said that it intends to expand glass fiber reinforced polypropylene materials in Japan, China and the United States. It is expected that the expansion plan will be completed by 2020, but no specific capacity will be disclosed. In the United States, Mitsui Chemicals also builds a thermoplastic elastomer plant in Ohio with an annual production capacity of 60,000 tons/year, and is expected to start production in October 2019. In addition, Mitsui Chemicals is preparing to further improve the vehicle battery in its Nagoya and Ningbo, China plants. Electrolyte capacity.
Mitsui Chemicals attaches great importance to the automotive materials market. This year, Mitsui Chemicals has invested 30 billion yen in vehicle material development and related mergers and acquisitions. With Mitsui Chemicals entering the European market, the company expects that by 2025, it will Generate synergy of 3 billion to 5 billion yen to help the company achieve greater economic benefits.
In addition to automotive materials, Mitsui Chemicals is also preparing to expand the nonwovens and pesticides market in Southeast Asia. The company hopes to achieve an operating profit of 200 billion yen by 2025 through overseas expansion and new product development.