In a move aimed at meeting rising Chinese demand for fluoroelastomers, Daikin Fluorochemicals China (Changshu, Jiangsu / China; www.daikinchem.com.cn) – a member of Daikin Industries (Osaka / Japan; www.daikin.com) – has touted plans to establish a new fluoroelastomer production plant in Changshu. The new facility comes at a price tag of about EUR 27m and is scheduled to begin operations in January 2013. Daikin did not specify the plant’s proposed output, saying only that once operational, it would increase overall group fluoroelastomer capacity by about 60%.

Daikin says its “Dai-el” fluoroelastomers excel at resisting change in shape and maintain their form for a long period even if pressure is applied. Thanks to their superior heat and oil resistant properties, they are particularly popular in automotive applications, where they help prevent leaks.

The Japanese group says it hopes the new facility will raise its current share of about 10% of China’s fluoroelastomer market to somewhere between 30-40% by 2015, significantly expanding its business. Between January and May 2010 alone, Chinese car sales rose by 57% – see Plasteurope.com of 21.10.2010 – making for huge market potential. Daikin maintains that China’s fluoroelastomer market was worth about EUR 72m in 2010 and is expected to reach EUR 117m by 2015. The added capacity means Daikin Fluorochemicals China will be in an ideal position to cater to this rising demand.

Aside from Changshu, Daikin operates fluoroelastomer plants at its facility in Yodowaga / Japan and in Lyon / France.