Polyamide compound production starts in Indonesia

The Southeast Asian nation of Indonesia with its population of 242 million-plus and motor vehicle production of more than 1.1 million vehicles in 2012 and 586,479 vehicles in the first half of this year, is surprisingly devoid of competent compounders of engineering resins for automotive applications. It has received a boost, however, though a Japanese investment in a polyamide (PA) 66 compounding capability.

Asahi Kasei Chemicals (Tokyo, Japan) started operations at a 4,000-tonnes/year facility for compounding automotive grades of Leona PA 66, including glass fiber reinforced materials, in Barat-Bekasi. The line is operated on a toll basis by the local affiliate of Japanese compounder Nippisun; P.T. Nippisun Indonesia.

Asahi Kasei Chemicals has earmarked expansion of its functional plastics business in Asia as a priority. The company now has compounding facilities in four regions and it is targeting the auto market in order to boost sales.

Behind its venture into Indonesia is the growth forecast for automobile production there. By 2016, production is expected to reach 1.5 million vehicles and an accompanied increase in engineering plastic compound demand.

Previously, Asahi Kasei Chemicals had supplied PA 66 compounds to the Indonesia market from its affiliate in Thailand. But seeing a need to respond to customer needs in a more timely fashion, the company has decided to tie up with Nippon Pigment Tokyo) joint venture Nippisun Indonesia to kick off local supply. Nippisun Indonesia already compounds modified polyphenylene ether (mPPE) resin for Asahi Kasei Chemicals on a toll basis in Indonesia.