Denka Company Limited and SCG Chemicals Public Company Limited have approved the establishment of a joint venture (JV) company on acetylene black business in Thailand. The partnership involves the manufacture and sale of acetylene black and the construction of a production plant. Denka will hold 60 percent while SCGC will hold 40 percent of Denka SCGC Advanced Materials Co., Ltd. It will have a capitalization of US$200 million.

The agreement was initially announced last Oct. 10 through the “Notice Regarding Establishment of Joint Venture Company to Manufacture and Sell Acetylene Black and Investment in Construction of Production Plant.” The signing ceremony was held last Oct. 18.

Denka’s acetylene black products (DENKA BLACK® and DENKA BLACK Li) are types of carbon black conductive material. They are manufactured through the thermal decomposition of acetylene gas. Through Denka’s proprietary thermal decomposition and synthesis technologies, the carbon black produced is extremely low in sulfur, metals and other impurities. Specifically, they achieve high purity and excellent conductivity. DENKA BLACK®/Li is applied in xEV lithium ion batteries and high-voltage power transmission cables for offshore wind power generation. Demand has expanded rapidly in recent years.

Currently, Denka manufactures acetylene black at three sites in Japan and overseas. However, it has been planning the establishment of a new manufacturing site to meet the sharp increase in demand. Specifically, the JV combines SCGC’s extensive and stable raw materials supply capabilities with Denka’s high-purity acetylene black manufacturing technologies and sales network. With the partnership, the company will strive to further improve production and sales capabilities.

Following the approval of the JV, the manufacturing facilities will have an annual production capacity of approximately 11,000 tons. Production is expected to start beginning in 2025.

Denka has positioned the environment and energy field, in particular xEVs and 5G, as one of the key fields in its business strategy. It aims to become an exceptional company that creates a better world for all.