Teijin Chemicals to enter PPS resin business

Teijin Chemicals Ltd. entered into an agreement with SK Chemicals, a South Korean chemical producer on a business collaboration including the establishment of a joint venture to develop, produce and distribute polyphenylene sulfide (PPS) resins and compounds in July. The joint venture, in which Teijin Chemicals will hold a 34 percent share and SK Chemicals the remaining 66 percent will construct a PPS resin plant in Ulsan, South Korea. The plant will begin operations with a PPS resin annual production capacity of 12,000 tonnes in the fiscal year starting in April 2015. As demand grows, capacity eventually is expected to reach 20,000 tonnes. An existing pilot plant will be utilised for market and application development until the new plant starts operating. The joint venture will pursue global markets, with a special focus on the fast-growing Asian region, aiming to become a world leader in PPS resin and compounds. The partners envision a global market share of 20 percent by 2020 and annual sales of $320 million in fiscal 2024.

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