Nippon Shokubai Strengthens Global Reach with New Indonesian SAP Plant

Nippon Shokubai Co., Ltd. has announced a strategic expansion of its Indonesian operations with the approval of a new Superabsorbent Polymer (SAP) plant. The decision was formalized at the company's board meeting on July 30, 2024. The forthcoming facility, to be established under the subsidiary PT. Nippon Shokubai Indonesia, will boast an annual production capacity of 50,000 metric tons of SAP. This substantial investment underscores Nippon Shokubai's commitment to strengthening its presence in the Indonesian market while capitalizing on the growing demand for SAP within the region.

SAP (Super Absorbent Polymer), a key product for Nippon Shokubai, is experiencing robust global demand, especially in areas with rapidly growing populations. To address this, Nippon Shokubai has decided to expand the capacity at its NSI plant. This follows a significant increase in its acrylic acid (AA) production, raising the total AA capacity to 240,000 tonnes per year. The company's vertically integrated production from AA to SAP enables it to efficiently meet the surging demand in Asia and capitalize on synergies with existing facilities.

In addition, Nippon Shokubai is assessing the future of its older, less efficient SAP production facilities in Himeji, Japan. These facilities may be shut down as part of a strategic move to enhance the global SAP supply network. This optimization is aimed at improving overall productivity and aligning with the company's focus on maximizing operational efficiency across its production sites.

The planned expansion will increase SAP production capacity to 140,000 tonnes per year, up from the current 90,000 tonnes per year, with an additional 50,000 tonnes per year of new capacity. Mechanical completion is scheduled for January 2027, and commercial operations are expected to commence in July 2027. This expansion will take place at the existing NSI plant site, with an estimated investment of approximately 110 million US dollars.

NSI, established in August 1996, is headquartered in Cilegon, Banten Province, Republic of Indonesia, where it operates both its head office and plant. The company, led by President Director Shinichiro Yoshimoto, specializes in the manufacture and sale of acrylic acid (AA), acrylates, and superabsorbent polymers (SAP). With a paid-in capital of 120 million US dollars, 99.9% of which is contributed by Nippon Shokubai, NSI employs 448 people as of March 31, 2024.

Nippon Shokubai's decision to expand its SAP plant in Indonesia reflects strategic alignment with rising global demand for superabsorbent polymers, particularly driven by growing populations in Asia. By increasing production capacity and leveraging its vertically integrated operations from acrylic acid to SAP, Nippon Shokubai aims to strengthen its market position and enhance efficiency. Additionally, the planned consolidation of older, less productive facilities demonstrates a commitment to optimizing its global supply network, ensuring sustainability and operational excellence.