Showa Denko to set up bulk moulding compound plant in China

Showa Denko KK (SDK) and Eternal Materials Co Ltd, a synthetic resin manufacturer based in Taiwan, have decided to establish a new production site for thermosetting bulk moulding compound (BMC) in Zhuhai, Guangdong Province, China. Showa Denko aims to strengthen its BMC business through this establishment of its second BMC production site in China.
 
BMC is a thermosetting bulk moulding compound made from unsaturated polyester resin as main component, kneaded together with glass fibre and other additives. BMC is used as headlamp reflectors and engine covers for car applications, and encapsulation material for home electrical appliances and precision parts.
 
Bulk moulding compound is also expected to be used much more as encapsulation material for motors installed in electric vehicles and hybrid vehicles. On moulding BMC parts, BMC is required to have thermal resistance, water-resistance, electric properties, and dimensional accuracy. SDK Group has high competitiveness not only in its ability to produce and market bulk moulding compound, but also in its capability to design customised BMC moulded parts to satisfy customer’s requirements.
 
SDK Group’s BMC business sector has production sites at three locations in Japan, Shanghai, and Thailand. Since 2007, SDK Group’s sales of bulk moulding compound in China has been recording annual growth rate of 15% in average, and its BMC plant in Shanghai has been operating at full capacity for quite a while. By establishing another BMC plant in China, where further market growth is expected, SDK Group will strengthen its BMC supply system in that region.
 
Under its medium-term consolidated business plan ‘Pegasus Phase II’, Showa Denko classifies its business in functional chemicals, including BMC, into the category of ‘Growth’ business. Thus, during the period of Pegasus Phase II which lasts for the whole year of 2015, SDK will aggressively expand its functional polymer business on the world market, centering on Asia.