December 9, 2024 – Hokuriku Electric Industry Co., Ltd. (Hokuetsu), a prominent Japanese company, has announced the successful completion of operational preparations for the first phase of its 90,000-ton-per-year polyoxymethylene (POM) production facility at DaHokuetsu Engineering Plastics (Nantong) Co., Ltd. in Nantong, China. The facility is expected to commence commercial operations at the end of November 2024, marking a significant milestone in Hokuetsu’s strategic layout in the POM market.
Historically, Hokuetsu’s position in the POM market faced challenges due to the shutdown of its Nantong plant. In March 2021, in line with the directives from the northern district of Nantong Economic Development Zone, Hokuetsu’s Nantong POM factory, with a capacity of 60,000 tons per year, was forced to cease operations. This shutdown directly impacted Hokuetsu’s global POM market share, allowing Celanese to surpass Hokuetsu with its 250,000-ton-per-year capacity and become the new leader in the global POM market. However, Hokuetsu did not falter and swiftly initiated a counterattack.
According to Color Masterbatch Industry News, Hokuetsu announced in 2022 its plan to build a new 150,000-ton-per-year POM factory in China to compensate for the lost capacity due to the shutdown. The new project was divided into two phases, with the first phase being the recently announced facility at DaHokuetsu Engineering Plastics (Nantong) Co., Ltd., boasting a capacity of 90,000 tons per year. The second phase is scheduled for completion in early 2026, which will bring Hokuetsu’s total POM capacity in China to 150,000 tons per year, potentially regaining its leading position in the global POM market.
While Hokuetsu’s China subsidiary remains cautious about disclosing the latest developments regarding the shutdown and its current effective POM capacity in China, the addition of 90,000 tons of annual capacity undoubtedly injects a strong impetus into Hokuetsu’s presence in the global POM market. With the official commissioning of this facility, Hokuetsu is poised to once again become the world’s largest POM producer, continuing to lead the development trend of the POM market.