Investment Background: SAP, a crucial component in global diaper production, has seen consistent demand growth, particularly in regions with rapidly increasing populations. To capitalize on this trend, Nippon Shokubai is expanding NSI’s capacity. The company previously enhanced its acrylic acid (AA) production by 100,000 tons per year, bringing the total AA capacity to 240,000 tons per year. This expansion leverages the company’s vertically integrated production process from AA to SAP, positioning NSI to meet growing demand in Asia and maximize synergies with the existing plant.
Future Plans: In light of the expansion, Nippon Shokubai will evaluate the future of its older, less efficient SAP production facilities in Himeji, Japan. The company may decide to close some of these facilities to optimize its global SAP supply network.
Investment Details:
- Production Capacity: 50,000 tons per year (current capacity is 90,000 tons per year, total capacity after expansion will be 140,000 tons per year)
- Timeline: Mechanical completion is expected by January 2027, with commercial operations commencing in July 2027
- Location: Existing NSI plant site in Cilegon, Banten Province, Indonesia
- Investment Amount: Approximately $110 million
