Japanese resin supplier DIC Corp. (Tokyo) plans to complete a compounding facility specifically for polyphenylene sulfide (PPS) resin in the Chinese city of Zhangjiagang in 2015.
The approximately $13 million facility will be sited at DIC's local affiliate DIC Zhangjiagang Chemicals Co., Ltd. (Jiangsu Province), which manufactures acrylic resins for high performance coatings and polyester resin for plasticizers. Compounding capacity will be 6,000 tonnes/year. DIC anticipates that 60% of capacity will be utilized by before the end of 2016.
Global demand for PPS compounds continues to grow at 6-8% annually whereas annual growth in China is outpacing this global average, reaching 10% per annum. Growth is mainly being fueled by the automotive sector.