Nippon Shokubai Announces a Subsidiary in Indonesia Plans to Expand Its Superabsorbent Polymers (SAP) Plant
- Management and Business
- Investor Relations
NIPPON SHOKUBAI CO., LTD. (headquarters: Osaka, Japan, President: Kazuhiro Noda, hereinafter “Nippon Shokubai”) hereby announces that Nippon Shokubai has resolved, at its board meeting held on July 30, 2024, to give approval to the investment plan at PT. NIPPON SHOKUBAI INDONESIA (hereinafter “NSI”).
The plan is to build superabsorbent polymers (hereinafter “SAP”) plant with 50,000 metric tons per year (“T/Y”), as follows.
1.Background of the investment
SAP, one of Nippon Shokubai’s core businesses, shows steady growth of demand as a key material for diapers globally, particularly in the regions the populations are anticipated to increase rapidly.
As a result of the study, Nippon Shokubai concluded to expand the capacity of NSI, as it had already expanded its production facility of acrylic acid (hereinafter “AA”) by 100,000T/Y (total AA capacity after the expansion : 240,000T/Y) and can take advantages of its strength from the vertically integrated production from AA to SAP to meet the strong demand growth in Asian region and the expectation for synergistic effect 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 US dollars |
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 |
| Business | Manufacture and sale of AA, acrylates and SAP |
| Capital | 120 million US dollars (paid-in capital) 99.9％ contributed by Nippon Shokubai |
| Number of employees | 448 (as of March 31, 2024) |
| Website | https://shokubai.co.id/ |
4.Influence on the business results
This project makes no influence on the business results of the current fiscal year ending on March 31, 2025. As for the business results in future, after the operation on fiscal year 2027, Nippon Shokubai will maintain and improve profitability by utilizing the above mentioned new plant effectively.
【Related releases】
Inauguration Ceremony Held for a New Acrylic Acid Facility in Indonesia – (May 24, 2023) https://www.shokubai.co.jp/en/news/2023052412480/