Joint venture facility with SCG Chemicals to be built in Rayong Province
Tokyo - Denka Co. Ltd and Bangkok-based SCG Chemicals (SCGC). are joining forces to build an acetylene black production facility in Rayong province, southern Thailand.
The $400-million (€377 million) plant will have the capacity to manufacture 11 kilotonnes per annum of acetylene black branded Denka Black and Denka Black Li, said the Japanese group in a statement 10 Oct.
Joint venture company Denka SCGC Advanced Materials is expected to be set up before the end of 2023, as soon as SCGC’s governing body makes a final decision on the investment, Denak added.
The JV partners expect to complete the construction of the plant by the first half of 2026 and start commercial production at the site in Map Ta Phut, Rayong, in the second half of that year.
In addition to “superior conductivity”, Denka said its Li materials have “very low amounts of metal, sulphur and other impurities” due to a proprietary thermal decomposition and synthesis technology.
The materials are particularly used in lithium-ion batteries of EVs and the high-voltage power transmission cables of offshore wind farms.
According to its website, Denka’s carbon black materials are also used for the production of conductive rubber for cables as well as other products such as belts, hoses, flooring and shoes.
Denka anticipates that the demand related to these applications is expected to expand further in the future.
The group currently manufactures acetylene black is in three locations inclduing in Chiba, Japan and Singapore.
The Thai production base will increase the stability of supply, it added.
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