July 5, 2025 –
Tosoh Corporation Accelerates Southeast Asian Expansion with Strategic Polyurethane Investments
Japanese chemical giant Tosoh Corporation is implementing a bold transformation of its polyurethane business, with two major developments reshaping its global production network:
- Vietnam Venture: The newly established Tosoh Polyurethane Vietnam Co., Ltd. is constructing a MDI refining facility near Ho Chi Minh City. Scheduled for April 2027 completion, the $300 million project will process imported crude MDI into:
- 70,000 tonnes/year pure MDI
- 30,000 tonnes/year polymeric MDI
Primarily serving ASEAN’s growing insulation and automotive markets
- Specialty Chemicals Boost: A ¥6 billion expansion at the Nanyo Complex will increase HDI derivative capacity by 50% to 30,000 tonnes/year by August 2026. This positions Tosoh as:
- Second-largest global HDI producer behind Wanhua
- Key supplier for premium automotive coatings
- Leader in corrosion-resistant industrial finishes
“These moves reflect our pivot toward high-value segments and emerging markets,” said Tosoh’s Polyurethane Division Director Kenji Sato. The strategy addresses multiple industry challenges:
• Declining chlor-alkali margins in China
• Rising environmental compliance costs
• Southeast Asia’s manufacturing boom
Market analysts highlight Vietnam’s advantages:
• Untapped polyurethane demand growing at 8% CAGR
• Competitive labor and energy costs
• Strategic Free Trade Agreement network
• Absence of established MDI producers
Tosoh’s 2024 financials reveal the urgency for transformation:
• 35% revenue dependence on chlor-alkali products
• 15% EBIT decline in commodity isocyanates
• 22% growth in specialty derivatives
The company is concurrently developing sustainable production methods:
• CO-based alternative to naphtha feedstocks
• Waste-heat recovery systems
• Closed-loop solvent recycling
Industry observers note Vietnam is becoming a chemical investment hotspot, with:
• Hyosung expanding synthetic rubber capacity
• China National Chemical Engineering building petrochemical complexes
• LG Chem establishing biodegradable plastics production
“Tosoh’s Vietnam bet could pay dividends if they capture first-mover advantage,” commented ASEAN Chemical Markets analyst Nguyen Thi Lan. “The regional supply-demand balance is shifting dramatically as multinationals reconfigure their Asian footprints.”