Showa Denko expands output of display, touch panel materials in China

16, Jun. 2020

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TOKYO, NNA - Showa Denko K.K., a Japanese chemical company, has doubled the production capacity of vinyl ester resin (VE) and synthetic resin emulsion (EM) by expanding its production lines at its Chinese subsidiary to cope with rising demand for electronic parts and environmentally friendly products in China.

This is the first production line expansion for Shanghai Showa Highpolymer Co., its subsidiary, and increased production will start in full swing this year, a spokesman for Showa Denko told NNA on Monday. Investment costs for the expansion have not been disclosed.

On the back of progress in telecommunication technologies such as 5G mobile communication systems, the market for electronic parts such as liquid crystal displays (LCDs) and touch panels has been growing.

“As a result, the demand for VE, which is used in the process to produce electronic parts including LCDs and touch panels, has been rapidly increasing in China,” the company said in a press release on Monday.

VE also has corrosion resistance and chemical resistance and demand for VE for use as a corrosion-resistant inner lining material has been on the rise, according to Showa Denko.

Other applications for this inner lining include desulfurization equipment, which is used in thermal power plants to help prevent electronic parts factories from polluting air and water.

Furthermore, regulations against volatile organic compounds (VOC) as an environmental protection policy that started in China in 2015, are causing a shift to aqueous paints and aqueous adhesives, both of which use EM, according to Showa Denko.

Shanghai Showa Highpolymer was set up in 2000 and commenced VE production and sales of VE in 2002, and those of EM in 2003. The products are mostly supplied to local Chinese firms as well as Japanese companies stationed in China.