TOKYO, June 5 (Kyodo) — Chemical product manufacturer Kuraray Co. said Tuesday it will invest about 20 billion yen to establish a new polyvinyl alcohol resin production facility in Texas, with its production slated to start in 2014.
The manufacturer aims to reduce raw material costs by using U.S. shale gas, a type of natural gas extracted from shale layers, whose output has been expanding. The resin known as PVA is used for making such products as adhesives.
The plant will have an annual production capacity of 40,000 tons, which Kuraray plans to raise to 60,000 tons by around 2016, the company said.
Kuraray's Senior Executive Officer Keiji Murakami told reporters, "We hope to respond to Central and South American demand which is growing at an annual rate of 4 to 5 percent."