Due to environmental policies and export situation, Kureha stops expanding PVDF factory in China

Kureha announced its decision to terminate the polyvinylidene fluoride (PVDF) production capacity expansion project of its wholly-owned subsidiary Kureha (Changshu) Fluorine Materials Co., Ltd. The expansion project was initially unveiled on July 20, 2021.

PVDF produced by Kureha is used as a binder material for lithium-ion secondary batteries (LiB) and as an engineering plastic in various industrial applications. Driven by strong electric vehicle sales and rising environmental awareness, in July 2021, Kureha announced plans to expand PVDF production at its Changshu plant to meet growing demand for PVDF binders in the automotive lithium-ion secondary battery market.

However, due to changes in China's environmental policies and the enactment of the U.S. Inflation Suppression Act, the business environment for lithium batteries has changed, causing the capacity expansion project to be delayed. Under this circumstance, Kureha decided in August 2023 to continue to promote the expansion of PVDF production capacity at the Iwaki plant in Japan.

The company expects increased production capacity in Japan to be sufficient to meet current demand growth. In view of this prospect and the difficulties in Sino-US trade under the new US laws, Kureha decided to stop the expansion of its facilities in China. In the meantime, Kureha will continue to provide PVDF manufacturing operations at its Changshu facility for customers in China and Europe. In addition, Kureha announced that it will exit the heat-shrinkable multi-layer film business, which is part of the company's food packaging production lines operating in Europe and Australia.

Kureha is also working on developing differentiated binder grades for lithium iron phosphate batteries, the most used lithium battery type in China, and plans to expand its share of the Chinese market in the medium to long term, indicating that companies can reinvest in China if business conditions change. Kureha said it will continue to pay close attention to market trends, maintain optimal production operations, and steadily expand its PVDF business.