Ube Industries to double polyurethane material output in Thailand to supply China, SE Asia

19, Jul. 2019

BANGKOK, NNA - Japanese chemical company Ube Industries Ltd., will double its production capacity of polycarbonate diol (PCD), a raw material of polyurethane, at a plant operated by its Thai subsidiary, UBE Fine Chemicals (Asia) Co., in response to continuing growth in demand in Asia, mainly China.

Ube said Tuesday that the PCD production capacity at the plant in the eastern province of Rayong, southeast of the capital, will be increased from the current 4,000 tons to 8,000 tons a year. The upgraded facility is due to start operation in July next year. They did not disclose the investment amount.

The plant’s products will be supplied to Thailand and its neighboring countries as well as China.

The company has a global market share of about 50 percent for PCD, which is the main raw material of high-grade polyurethane and is used in a widening range of products including motor vehicles, furniture, building material coatings and synthetic leather, a spokesman told NNA.

Demand for the chemical – with properties that improve the heat resistance and other functions of polyurethane as well as enhancing the touch and feel – is also growing as a material for paints without solvents at a time when countries around the world are tightening regulations on volatile organic compounds.

Ube has PCD production bases in Japan, Spain and Thailand. After the upgrade of the Thai plant, Ube’s annual PCD production capacity will reach 18,000 tons: 2,000 tons in Japan and 8,000 tons each in Spain and Thailand, the spokesman said.