Polyplastics announces that it will undertake construction to increase the capacity of its super-engineering plastic VECTRA® liquid crystal polymer (LCP) polymer line at the Fuji Plant. The line is scheduled to go into full operation in April 2008. Construction will boost the current 5,200-ton annual capacity of the VECTRA® LCP polymer line at the Fuji Plant to 8,200 tons per year.
Liquid crystal polymer is a highly heat-resistant super-engineering plastic with applications in a wide variety of industries. It is used primarily in electronic components for personal computers, mobile phones, and other telecommunications equipment. The market for liquid crystal polymers continues to expand rapidly. LCP has established a solid position as an advanced engineering plastic material that is vital to manufacturing because of its suitability for miniaturizing electronic components and use in eco-friendly applications utilizing surface mount technology at lead-free solder temperatures. Sales of VECTRA® LCP grew at a rate of more than 20% for three consecutive years from 2003 to 2005. Sales are expected to continue to grow at a rate near 25% in 2006. In terms of compound products, the global LCP market is expected to reach 30,000 tons in 2006. Three-quarters of the market is concentrated in the Asian region where demand for LCP is anticipated to keep escalating. Polyplastics' inability to adequately respond to this growing demand in recent years prompted the decision to expand its current production capacity.
The largest application of liquid crystal polymers is their use in connectors; the VECTRA® series of products with low-warp properties has greatly contributed to robust sales in the connector market. Also, the new I-type LCP with high heat resistance and excellent molding properties has earned a good reputation in the market and is increasingly used in high-end connectors. In addition, the new market for LCP in film and fiber extrusion applications and progress in the development of materials and markets in this new field is increasing the demand for VECTRA®. It is expected that in the future VECTRA® will be used in a growing number of applications in new fields such as this.
Polyplastics' long-term growth strategy for its LCP business continues to focus on development and marketing of new products that match market needs. The current construction project to increase production capacity aims to ensure a stable supply of VECTRA® LCP to the growing market for liquid crystal polymers in Asia. Active development of the LCP business includes plans, now under consideration, to further increase production to 10,000 tons per year within the next several years. Moving forward, Polyplastics will maintain and strengthen its position as a top manufacturer of liquid crystal polymers by making every effort to ensure a stable supply of high-performance, high-quality products worthy of the trust and confidence of its customers.
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LCP Polymer Line
