Denka plans ¥ 2.7 bn investment renovate polystyrene facilities in Singapore

Denka plans ¥ 2.7 bn investment to renovate polystyrene facilities in Singapore

10:24 AM, 16th September 2019
Denka logo

TOKYO, JAPAN: Denka Company Limited has decided to terminate the production of polystyrene (Product name: Denka Styrol) at its consolidated subsidiary Denka Singapore Private Limited (DSPL).

Also announced to boost the production capacity of methyl-methacrylate-styrene (MS) resin by renovating the production facility, as part of business portfolio transformation initiatives implemented under the Denka Value-Up management plan.

The total amount of investments pertaining to the renovation of the facilities is approximately 2.7 billion yen. MS resin is currently in a situation where the supply capacity is not meeting demand. This is attributable to optical applications of the material as light guide plates for backlights whose demand is sharply growing as LCD TVs and monitors employ larger displays and narrower frames, as well as being partly due to the expansion of non-optical applications for products such as cosmetics containers whose needs are growing significantly in the Asia Pacific area, including China, among other countries.

To respond to growing demand, Denka, which is the leading manufacture of MS resin, will double production capacity of MS resin (capacity for the expansion: up 70,000 tons, total 140,000 tons) by renovating the existing polystyrene production facilities, and continue to address the rise in demand, down the road. In addition, it will step up its BCP efforts by enhancing the current single facility-based production system to a dual facility-based production system.

Denka commenced the production and sale of polystyrene in 1997 in Singapore, with a focus on MW-1, a highly robust general-purpose polystyrene (GPPS) which has been used in more than 30 countries around the world including ASEAN and China.

However, with the supply of polystyrene surpassing demand in overseas markets, Denka has recently decided to terminate the production of polystyrene and transform its production facilities into those for MS resin, a higher value-added functional resin.

Denka instituted the Denka Value-Up management plan to achieve 90% of operating income from specialty businesses by fiscal 2022. Going forward, it will continue to make investments speedily to respond to future demand, and by doing so, aim to facilitate further specialization in its core businesses.

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