NIPPON SHOKUBAI CO., LTD. recently announced that its subsidiary PT. NIPPON SHOKUBAI INDONESIA (“NSI”) held an inauguration ceremony on May 23, 2023, for the new acrylic acid (“AA”) facility with the production capacity of 100,000 MT/Y in Cilegon, Banten, Indonesia. Total investment on the project is approx. 200 million US dollars.

 

Nippon Shokubai Group manufactures superabsorbent polymers (“SAP”) for disposable diapers and AA which is the raw material for SAP. AA is also used as raw materials for paints and adhesives etc. in the market. Nippon Shokubai has AA/SAP production bases around the world and taking advantage of their integrated production from AA to SAP to supply stably and widely around the world, and even maintains the top share of SAP in the world (according to Nippon Shokubai research in 2022).

 

Nippon Shokubai Group’s AA is used to produce SAP for disposable diapers as its largest application, and global demand of AA is expected to grow steadily due to factors such as an increase in the population of infants and the elderly. To meet the growing demand, Nippon Shokubai Group strengthen the global AA/SAP supply network.

 

Nippon Shokubai Group’s AA production capacity will expand to 980,000 MT/Y (domestic 540,000 MT/Y, overseas 440,000 MT/Y) by integrating the new AA capacity of 100,000 MT/Y in NSI. Nippon Shokubai Group will continue to meet the needs of customers around the world as an AA/SAP supplier.