Page 150 - CW E-Magazine (9-4-2024)

News from Abroad

BUSINESS REALIGNMENT
Kureha discontinues PVDF expansion in China, with-

draws from heat shrink multi-layer film business

Japan’s Kureha Corporation has ficient to meet the immediate increase packaging line which the company ope-
announced its decision to discontinue a in demand. Given this outlook and fore- rates primarily in Europe and Australia.
capacity expansion project for polyvi- seeable difficulties in China-to-US ex- For past years the company said it has
nylidene fluoride (PVDF) at its whol- ports under the new US law, Kureha has worked to improve profitability by shift-
ly-owned subsidiary, Kureha Changshu therefore determined to discontinue the ing to high-performance products and
Fluoropolymer Co. Ltd. in China. The facility expansion in China,” the company striving to reduce fixed costs, however,
expansion project was originally made informed. it had been finding it increasingly diffi-
public on July 20, 2021. cult to differentiate products that do not
Meanwhile, Kureha will continue use raw materials produced in-house,
PVDF is used as a binder material PVDF manufacturing operations at the while facing cost pressures amid the
for lithium-ion secondary batteries (LiBs) Changshu facility for customers mainly European inflation. Kureha has deter-
and also as an engineering plastic in in China and Europe. The company is mined the business continuation was
various industrial applications. Kureha also working to develop differentiated unfeasible and started proceedings to
had planned the expansion of PVDF binder grades suitable for iron phosphate withdraw from the business.
production at its Changshu facility to (LFP) LiBs, a major type of LiB used in
address growing demand for PVDF China, and is planning over a medium to The Kureha Group has continually
binder in the automotive LiB market. long term to expand share in the China optimised its product portfolio in the
“However, this capacity expansion pro- market, suggesting there are possibilities food packaging businesses over the
ject has been delayed due to changes in for reinvestment in the country if busi- years, including withdrawing from the
China’s environment policy, and moreover, ness conditions change. Kureha said it deep-draw film business in 2018 and
the business environment surrounding will continue to closely monitor mar- divesting the blow bottle business in
LiBs has changed following the enact- ket trends, maintain optimal production 2019 and a joint venture to manufacture
ment of the US Inflation Reduction Act,” operations, and steadily expand the polyvinylidene chloride (PVDC) in China
the company stated. PVDF business. in 2022. “Going forward, we aim to
improve capital efficiency by focusing on
Consequent to this, Kureha decided Withdrawal from the heat shrink the PVDC films business using in-house
in August 2023 to move ahead with the multi-layer film business raw materials, allocate resources more
capacity expansion for PVDF at its In addition, Kureha has announced it effectively, and restructure the food
Japan Iwaki factory. “We now expect this will withdraw from the heat shrink multi- packaging business that will increase
enhanced capacity in Japan will be suf- layer film business, a part of its food corporate value,” the company said.

PETROCHEMICALS PROJECT
SABIC’s Chinese JV opts for Lummus’ ethylene

technologies

Lummus Technology, a global provider SABIC) and Fujian Fuhua Gulei Petro- this year and complete it in 2026. The
of process technologies, has announced chemical Co. Ltd. (holding by Fujian complex is the largest single investment
that SABIC Fujian Petrochemical Co. Energy and Petrochemical Group), with joint venture project with foreign invest-
Ltd.’s grassroots complex in Fujian Prov- SABIC being the majority owner. On ment in Fujian Province to date. Lummus’
ince, China, will leverage Lummus’ ethy- January 22, 2024, SABIC announced scope for the project includes technology
lene and co-monomer technologies. the final investment decision for the license and basic design engineering for
SABIC Fujian Petrochemicals is a 51:49 SABIC Fujian Petrochemical Complex up to 1,800-ktpa ethylene/1,020-ktpa pro-
joint venture between SABIC Industrial (Sino-Saudi Gulei Ethylene Complex pylene multi-feed steam cracker unit, a
Investment Company (wholly owned by Project) and plans to begin construction 60-ktpaa butene-1 unit and BTX products.

150 Chemical Weekly April 9, 2024

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