Spend 5.9 billion yuan! The chemical giant will build a 350,000 tons/year paint raw material factory!

According to public information, Mitsubishi Chemical will invest more than 100 billion yen (approximately 5.9 billion yuan) to build a resin raw material plant for automobiles and coatings. Mitsubishi Chemical will increase its production of propylene resin raw material "MMA" in the United States, which is a highly versatile resin used in automobile lampshades, signboards, and residential coatings. Mitsubishi Chemical holds the world's largest share of about 40%.

The new plant is built in Louisiana in the southern United States and will be put into operation in 2025. With an annual production capacity of 350,000 tons, equivalent to about 10% of global demand, it will become the world's largest factory. Mitsubishi Chemical's overall supply capacity will increase by 20%, and it is possible that the investment will increase to about 150 billion yen.

Other Japanese material manufacturers are also actively investing in the United States. Shin-Etsu Chemical Industry will build a vinyl chloride resin plant in Louisiana before the end of 2023 for tap water pipes, wire coating and building materials. Nippon Steel will cooperate with ArcelorMittal Europe to build a new electric blast furnace in Alabama to use iron scrap to produce raw materials for automobile steel plates and pipeline steel pipes.

Statistics from the Ministry of Finance of Japan show that Japanese companies' investment in the United States from January to March increased by 40% year-on-year to 2.4949 trillion yen, the highest level since the second half of 2017.