Sumitomo Chemical and Toyo Ink Manufacturing to Establish Polypropylene Compound Company in China

Sumitomo Chemical has announced its plan to establish in May a new company in China to manufacture and sell polypropylene compounds for automotive applications.

To be headquartered in Zhuhai, Guangdong Province, the new company provisionally called Sumika Polymer Compounds (Zhunhai) will be owned 55% by Sumitomo Chemical and 45% by Toyo Ink Manufacturing.

Demand for polypropylene compounds is rapidly rising from Japanese automakers expanding their operations in southern China.

The new company will have an initial production capacity of 10,000 tons per year, and will eventually double the capacity to 20,000 tons.

Manufacturing operations are slated to begin in mid-2006.

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