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Establishment of a Polyolefin Foam Production Company for Automobile Interiors in Wuxi, China
Mar 24, 2017


SEKISUI CHEMICAL CO., LTD. (President: Teiji Koge, hereinafter called "SEKISUI") is scheduled to open a new polyolefin foam manufacturing company, which will be its second in China (the first being YOUNGBO HPP (Langfang) CO.,LTD: Langfang, Hebei Province), through the consolidated Korean subsidiary YOUNGBO CHEMICAL CO., LTD. (Head office: Cheongju, South Korea), in June 2017.

SEKISUI is rolling out the polyolefin foam business globally, top-class share of the world polypropylene (PP) market for interior trims for automotive vehicles.

The number of vehicles manufactured in China in 2016 was approx. 28 million, and this is an extremely large market accounting for more than 20% of the world's automotive production, with the prospect of strong growth in the future. In addition, demand for SEKISUI products, which improve the quality of interior trims, is increasing against a background of customer needs for vehicles in China becoming more high-class.

In such a market environment, as always, SEKISUI has decided to establish a new company focusing on PP foam for interior trims for automotive vehicles. PP foam is used as an underlay in vehicle interiors, and is a high-performance foam with functions such as high cushioning ability and formability. Approx. 2.5 billion Japanese yen has been invested in the new company to install new buildings and production lines, which are scheduled to begin operations during the first half of FY2019. 

Usage image (door interior)

Usage image (door interior)

Polyolefin Foam and the SEKISUI Foam Business

Polyolefin foam is a soft foam product that results from heating polyolefins (polyethylene or polypropylene, etc.).

SEKISUI is a pioneer that invented the world's first production method using irradiation and, currently, manufactures and sells various foam products mainly closed cell and physically crosslinked polyolefin foam, which has excellent heat insulation, heat resistance, processability, and durability, etc. The applications for foam products are extremely broad and, starting with automobiles, are used in various fields such as construction and electronics, including home appliances and mobile devices, etc. Foam products are basically made in each demand area, and the SEKISUI Chemical Group has 10 foam production plants all over the world.  

(Scheduled) Summary of New Company

•Address: Jiangsu Province Wuxi city Xi shan District Economic and Technological Development Zones Feng wei Road No.2 (Head office and factory)

•Established: June 2017

•Capital: US $ 24 million (100% investment by YOUNGBO CHEMICAL CO., LTD.)


•Principal business: The manufacture and sale of cross-linked polyolefin foam

•Scale: Lot area: 22,000㎡; factory and buildings area: 7,500㎡

•Production capacity: 16 million ㎡/year

•No. of employees: 40


This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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