Mitsui Chemicals, Inc. is expanding its subsidiary in Thailand, Grand Siam Composites’ polypropylene (PP) compounding capacity to meet increasing global demand from the automotive industry.

The expansion due on stream in June 2020 will boost the overall global compounding capacity of the group to nearly 1 million tons per year, ranking it second behind LyondellBasell.

LyondellBasell already possessed close to 1.36 million tons per year of PP compounding capacity, mainly serving the auto sector, prior to its acquisition of A. Schulman in 2018. A. Schulman itself has PP compounding capacity estimated by consultant Townsend Solutions at around 400,000 tons per year. This is in addition to an estimated 100,000 tons per year of PP masterbatch capacity and 600,000 tons per year of compounding capacity for other resins.

The Mitsui Chemicals Group currently operates eight compound production bases around the world (Japan, USA, Mexico, Europe, Thailand, China, India and Brazil) and research bases in five areas (Japan, USA, Europe, Thailand and China). The Group has continued to enhance its production systems, sales and R&D of high-performance PP compounds, which can be used to help reduce the weight of automobiles. It is also investing in more capacity for long glass fiber PP.

This capacity increase will not only enhance the supply capabilities of the Mitsui Chemical Group in the growing Asian market, but will also expand the global supply system of the Group and ensure a stable supply of premium quality products to Asian-based automakers and parts manufacturers.

Mitsui Chemicals to Boost PP Compounding Capacity
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