Optimistic about the Chinese market! Asahi Kasei increases composite production capacity at its Changshu site

On October 11, Asahi Kasei announced on its official website that it has decided to expand production capacity by introducing high-precision extruders at its resin compound manufacturing plant in China (Changshu, Jiangsu Province) and has decided to increase strategic investments
in the Chinese market for its functional materials business.

The capacity of the Changshu production base is in short supply

Asahi Kasei Kasei built a new compound plant, Asahi Kasei Plastics (Changshu) Co.
, Ltd.
, in Changshu, Jiangsu Province, China, and started full-scale production in April 2021, but as the functional materials business grows in the Chinese market, it is expected that there will be a shortage of
production capacity after fiscal 2024.

In view of this situation, Asahi Kasei has decided to increase its production and storage capacity, and plans to start production
in October 2023.
In addition, in order to expand the scale of extruders such as electric vehicles (EVs) and fifth-generation mobile communication systems (5G) as soon as possible, it was decided to introduce high-precision large-scale extruders
in order to enter and expand the scale of the extruder to increase production capacity and adopt the latest production technology and establish a smooth mass production system for new strategic grades.

The Composite Production Technology Center, which is also Asahi Kasei's compound production technology development and mass production base, has the same type of equipment, and through the center's collaboration with Asahi Kasei Plastics (Changshu) Co.
, Ltd.
, the center's technology transfer and technical support are expected to accelerate the mass production
of new strategic grades.

With the growth of the functional materials business in the Chinese market, Asahi Kasei Plastics (Changshu) Co.
, Ltd.
will continue to improve its production capacity and automatic storage capacity and strive to further strengthen it in order to provide customers with new value-based products
.

The outlook for the Chinese market is positive

Asahi Kasei has steadily increased sales of engineering resins in the automotive and solar cell module (PV) applications as the focus on the expansion of its business in China's functional materials market, thereby gradually expanding the scale of composite production in China and surpassing that of Japan
.
At the same time, the company is expected to increase sales in new application markets, such as electric vehicles (EVs), fifth-generation mobile communication systems (5G), connectors, and eco-friendly materials with growth potential
.

Aiming for 2030, the Asahi Kasei Group has positioned the functional materials business of the Mobile & Industrial Division as a key strategic business, with a particular focus on expanding its functional materials business in China, which has a promising
market prospect.