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Tuesday, 1 November 2016, 16:10 JST

Source: Showa Denko K.K.
SDK Starts Test Run of Bulk Molding Compound Plant in Zhuhai, China

TOKYO, Nov 1, 2016 - (JCN Newswire) - In November 2016, Showa Denko ("SDK"; TSE:4004) will start a trial run of a new plant to produce thermosetting bulk molding compound (BMC) located in Zhuhai, Guangdong Province, China, as an important step toward the establishment of the Showa Denko Group's second BMC production base in China. The work to construct this new plant was started in November 2015. SDK plans to start mass production of BMC at the new plant and sale of the product at the beginning of 2017 after the test-run products pass customer's quality inspections.

Showa Denko New Material (Zhuhai) Co., Ltd.

BMC is a thermosetting bulk molding compound made from unsaturated polyester resin as main component, kneaded together with glass fiber and other additives. BMC is put to various uses including headlamp reflectors and engine covers for car applications, and precision mold parts for projectors. Moreover, the range of BMC's use is expected to increase in the future. BMC is expected to be used as sealing material for power-module housings and motors in home appliances including air conditioners and washing machines, and also as sealing material for motors in EVs and hybrid cars. On molding of BMC parts, BMC is required to have thermal resistance, water-resistance, electric properties, and dimensional accuracy. SDK Group has high competitiveness not only in its ability to produce and market BMC, but also in its capability to design customized BMC molded parts to satisfy customer's requirements.

In July 2015, SDK and Eternal Materials Co., Ltd., a synthetic resin manufacturer based in Taiwan, jointly established Showa Denko New Material (Zhuhai) Co., Ltd. in Zhuhai, Guangdong Province, China, as SDK Group's second BMC production base in China. Since then, these three parties have been working to construct the new plant.

SDK Group's BMC business sector has production bases at three locations: in Japan, Shanghai, and Thailand. SDK Group's sales of BMC in China have been recording high annual growth rate these days, and our BMC plant in Shanghai has been operating at full capacity for quite a while. Thus further growth of BMC market is expected in China. By producing BMC at two production bases in China, located in Shanghai and Zhuhai, SDK Group will strengthen its BMC supply system in that region.

Under its ongoing medium-term consolidated business plan, "Project 2020+," SDK Group classifies its business in functional chemicals including BMC into the category of "Growth-accelerating" business. SDK will aggressively expand its functional polymer business on the world market, centering on Asia.

Outline of the new joint venture to produce BMC:

Company name: Showa Denko New Material (Zhuhai) Co., Ltd.
Location: Zhuhai, Guangdong Province, China
Date of incorporation: July 2015
Predetermined date of start-up of commercial operation: At the beginning of 2017
Scope of business: Production of BMC
Capital: RMB 70,000,000 (JPY 1,120,000,000: RMB1/JPY16)
Shareholders: SDK (70%), Eternal Materials Co., Ltd. (30%)
Number of employees: about 50 employees

Public Relations Office
Phone: 81-3-5470-3235

Topic: Press release summary
Source: Showa Denko K.K.

Sectors: Chemicals, Spec.Chem
From the Asia Corporate News Network

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