KH Neochem : Notice Regarding Capital Investment in Performance Materials
December 27, 2021 at 01:07 am
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December 27, 2021
Notice Regarding Capital Investment in Performance Materials
KH Neochem Co., Ltd. (TSE: 4189, President and CEO: Michio Takahashi, "KH Neochem") announced that the Board of Directors meeting held on December 27, 2021, resolved to invest in new facility of KH Neochem's manufacturing plant, for the purpose of increasing the production capacity of refrigeration lubricant raw materials, a major product in the performance materials business.
1． Purpose of investment
Recently, there has been growing demand for KH Neochem's refrigeration lubricant raw materials due to the expansion of the air conditioner market such as in emerging countries and the shift to environmentally friendly refrigerants to protect the ozone layer and prevent global warming. Refrigeration lubricant is a lubricating oil used to circulate refrigerants inside air conditioners. With the tightening of international environmental regulations, demand for environmentally friendly refrigeration lubricants is expected to grow further in the future.
Through this capital investment, KH Neochem will strengthen and optimize the production capacity of the entire Chiba Plant, including for refrigeration lubricant raw materials, further enhancing profitability of the plant. By enhancing the supply of refrigeration lubricant raw materials, KH Neochem will help to bring about an environmentally friendly society.
2． Details of Investment
(1)
Location
11-1 Goi Minami-kaigan, Ichihara City, Chiba Prefecture
(2)
Production item
Refrigeration lubricant raw materials, etc.
(3)
Total investment amount
Approx. 9.5 billion yen
(4)
Financing
Cash on hand and debt financing (planned)
3． Scheduled date
(1)
Start of construction
June, 2022 (planned)
(2)
Completion of
July, 2024 (planned)
construction
(3)
Start of production
August, 2024 (planned)
4． Future Outlook
This capital investment will have no impact on the consolidated financial results for the fiscal year ending December 31, 2021.
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KH Neochem Co. Ltd. published this content on 27 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 December 2021 06:06:13 UTC.
KH Neochem Co Ltd is a Japan-based company engaged in the manufacture and sale of petrochemicals. The Company's business is divided into three business units. The basic chemical businessâs main products include butyl alcohols, octyl alcohols and butyl acetates. The business is involved in the provision for the manufacture of paints, inks, commodity resins, plasticizers, detergents and others. The performance material businessâs main products include isononanoic acids and octylic acids, among others. The business is involved in the provision of raw materials for surfactants, water-based paints, cosmetics, pesticides, as well as pharmaceutical products. The electronic material businessâs main products include propylene glycol methyl ether-pure (PM-P) and propylene glycol methyl ether acetate-pure (PMA-P). The business is involved in the provision for semiconductors, display materials and optical materials, among others.
KH NEOCHEM CO., LTD. 
