Kaneka increases production capacity of chlorinated polyvinyl chloride resin (CPVC) business in United States

Kaneka Corporation (Osaka, Japan; President: Kimikazu Sugawara) officially announces to increase the annual production capacity of chlorinated polyvinyl chloride resin* (hereinafter referred to as “CPVC”) at wholly-owned subsidiary Kaneka North America LLC (Texas, USA; President: Kazuhiko Fujii; hereinafter referred to as “KNA”) by approximately 20,000 tons, bringing it up to 50,000 tons per year to meet the robust demand in North America. The investment is expected to be nearly ¥5 billion, and operations are scheduled to launch in early 2015.

CPVC is a polyvinyl chloride resin with superior heat resistance properties used in residential and commercial hot water distribution pipes and fire sprinkler systems as well as industrial pipes, and demand is growing globally. KNA has been engaged in full capacity production, and although efforts to increase capacity through debottlenecking were completed this month, those efforts are not sufficient to meet the growing demand in the United States and Central/South America.

Kaneka is operating its CPVC business primarily in Japan, the United States and Asia. The expansion of production capacity is to bring the combined production capacity between Japan and the United States to 76,000 tons per year. By establishing a global production structure, Kaneka is looking to further increase the competitiveness of its business in the growing CPVC market.

* Chlorinated polyvinyl chloride resin (CPVC) is a special polyvinyl chloride resin to which chlorine is added. It offers superior heat resistance and in recent years is being used increasingly in hot water distribution pipes as residential demand grows.