Kuraray to Boost Capacity, Eyes New Singapore Plant

Kuraray Co., Ltd. said it will beef up production capacity for its EVAL ethylene vinyl alcohol copolymer (EVOH) resin with a new facility in Singapore. Specifically, the company plans to put up the new plant inside Kuraray Asia Pacific Pte. Ltd. in Jurong Island.

Moreover, the proposed plant aims to have an annual production capacity of 18,000 tons, which is likely to begin operations by the end of 2026.

The front-end process will have a capacity of 36,000 tons per year with possible future expansion. In addition, the back-end process will have two phases. The approximate investment amount is around US$410 million.

Boost Global Capacity

The new facility planned in Singapore will be able to meet the growing demand in the Asian market. Moreover, it will also strengthen the global supply chain. In addition, this will also enhance Kuraray’s technical service in the region.

As soon as the planned Singapore plant starts operations in 2026, the company expects to have a combined total annual production of 131,000 tons. The Singapore plant’s 18,000 tons projected churn will augment capacities in Japan, Europe, and Americas.

Moreover, aside from Singapore, the company also has expansion plans ongoing in Europe and Americas.

EVAL resin is a functional resin with the highest level of gas barrier properties. Most importantly, Kuraray developed and commercialized the said material for the first time in the world.

EVAL’s main applications include food packaging. In addition, its main applications also include industrial fields such as vacuum insulation panels, under-floor heating pipes, and automotive.

Environmentally Friendly

Recently, from the perspective of a circular economy, there has been an increasing need for environmentally friendly products for packaging. Thus, a shift to recyclable packaging materials has been emerging. Particularly, there has been an increasing demand for Kuraray’s EVAL resin for this application.

Demand for EVAL resin has been increasing because its barrier material does not disrupt the recycling streams of polyolefins. The company expects demand to increase further globall, particularly in Europe and the United States.

Thus, as a leading company in EVOH resin and barrier materials, the company group aims to further expand its business. Moreover, to contribute to improving the natural and living environments.

-2 April 2024-