Ube plans to expand production of caprolactam and butadiene rubber

Ube Industries, Japan is currently conducting a feasibility study of caprolactam and butadiene rubber expansion projects, and a final decision will be made in 2011.

With the recovery of the global economy, the demand for these two products has grown steadily. Ube Industries is the largest caprolactam producer in Asia, with an annual production capacity of 390,000 tons, and is located in Japan, Thailand and Spain. At present, the supply gap for caprolactam in Asia is as high as 500,000 tons/year. Even if Ube Industries has all its equipment at full capacity, it is still difficult to meet the needs of the Asian market. From a global perspective, the global supply gap will be further expanded by 2015, as some aging installations in Eastern Europe, Russia and Latin America will be gradually shut down. The company believes that Thailand will be the best place to expand, because it is close to the largest markets, China and India, with the best competitiveness and market prospects.

In addition, due to the growing demand for butadiene rubber in the rapid development of the automotive industry in Asia, the company decided to implement the global butadiene rubber production capacity expansion strategy and expand its production bases in China, Thailand, and Chiba, Japan. At present, Ube Industries' butadiene rubber production capacity is 217,000 tons per year. In order to comply with the Japanese tire manufacturers' overseas expansion strategy, Ube Industries decided to increase the production capacity of Japanese and Chinese bases by 50,000 tons/year by 2013 and plans to build a new production capacity in Thailand from 50,000 to 70,000 tons/year in 2015. Shunde Rubber Factory also increased the production capacity of Chiba Base by 20,000 tons/year.