Asahi Kasei to make Thai plant diaper material output hub

18, Mar. 2019

BANGKOK, NNA - Japanese chemical maker Asahi Kasei Corp. will expand spunbond production capacity by over 40 percent in Thailand to meet growing demand for diapers, making the Southeast Asian nation its largest production base.

Its subsidiary Asahi Kasei Spunbond (Thailand) Co. plans to raise annual output capacity of polypropylene spunbond nonwoven fabrics from 35,000 tons to 50,000 tons, starting in July 2021, it said Friday. A spokesman declined to disclose the investment value.

The construction of a third production line of 15,000 tons a year will begin within this month at a plant in Saha Group Industrial Park Sriracha in Chonburi Province, southeast of Bangkok, it said in a statement.

The Thai unit, established in 2012, started operating a second production line in 2016 to “meet rapidly growing demand for spunbond for diaper applications in Asia,” the statement said.

The Tokyo-based company has production facilities for polypropylene, polyester and nylon spunbond nonwovens in Moriyama, Shiga Prefecture in western Japan and in Nobeoka, Miyazaki Prefecture in southwestern Japan, in addition to the one in Thailand.

Its expansion of production since 2012 is aimed at meeting rising demand for disposable diapers and other hygienic products, automotive and other industrial applications, and deodorizing sheets and other consumer products, according to the statement.

The combined annual production capacity of the two plants in Japan stands at 34,000 tons. After the completion of the output boost in Thailand, the Thai unit will account for about 60 percent of the firm's total spunbond nonwoven fabrics capacity, the spokesman told NNA. (NNA/Kyodo)