Mitsubishi Chemical Plans USD 127 Million Worth of Polyester Production Expansion in Germany
- Journalist: Robert Hume
Japan-based performance products major, Mitsubishi Chemical Corporation, on October 1, announced its future investment rounding to USD 127 million on the expansion of the production capacity of polyester at its German conglomerate Mitsubishi Polyester Film Co., Ltd. (MFE) in Wiesbaden.
The new polyester unit, which is set to reach completion towards the 2024 end, will be exhibiting an annual production capacity of 27,000 tons of polyester film. The new project follows the commissioning of a new production line of polyester in South Carolina, USA in 2018 and the latest venture in Jakarta, Indonesia, that is scheduled to start operating in 2022. The company enjoys a strong geographical positioning with production facilities installed in major countries that include Japan, China, Germany, and the United States.
Polyester films, also known as Polyethylene Terephthalate (PET) films, are durable, lightweight, chemically resistant and thermally stable plastic films that serve many end-user applications including the food and beverage industry, pharmaceuticals, cosmetic industry, electronics, optical instruments, insulating materials. It also has high demand in the packaging and label printing sectors.
As per ChemAnalyst, the global demand for Polyethylene Terephthalate film will be witnessing growth at a CAGR of over 5% owing to the burgeoning flexible packaging industry and increasing demand for flat panel display market with growing living standards. The addition of capacities in Europe will aid in balancing the Polyethylene Terephthalate film supply in the end-user industries. The investment will be strengthening the company’s production base in Europe and will enhance its standing in the competitive polyester film market.