Daikin building fluoroelastomer plant in China

ERJ staff report (R&PN)

Osaka, Japan - Daikin Industries Ltd. plans to build a $38.2 million fluoroelastomer factory in Changshu, Jiangsu province, to meet what it said is growing demand in the automotive industry.

The Osaka-based company said the factory, which is estimated to be operational in 2013, will boost its fluoroelastomer capacity globally by 60 percent. The company makes fluoroelastomers at plants in Osaka, Japan and Lyon, France.

The company said auto makers in China are increasingly shifting to local procurement for parts that use fluoroelastomers, including oil seals and fuel hoses, and that the market is expected to grow 1.6 times larger by 2015.

The Chinese market was estimated at $101.9 million last year, and will be $165.6 million in 2015, Daikin said.

Fluoroelastomers can reduce fuel and oil leaks in cars and cut the environmental impact over the long-term, the company said.

Daikin said with the Changshu factory, it is targeting a rapid increase in its market share in China, from about 10 percent now to 30-40 percent in 2015.

From Rubber & Plastics News (A Crain publication)