Japan-based Zeon Kasei opens US$ 14 million facility in San Luis Potosi

Japan-based Zeon Kasei opens US$ 14 million facility in San Luis Potosi

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Japan-based Zeon Kasei Co., Ltd., a subsidiary of Zeon Corporation, announced the opening of a new plant in San Luis Potosi, where the company invested US$ 14 million and recruited 40 workers in order to start the first phase of operations.

The facility will produce resin compounds (PVC/PSC) for powder slush molding, using polyvinyl chloride resin as raw material.

The company chose Las Colinas Industrial Park, located in the state capital, because of its infrastructure and easy access to Japanese and European automakers in Mexico as well as to the North American market, said the company in a press release. 

The first phase of operations was planned to achieve an annual production capacity of 1,200 tons, but the company expects to keep pace with the expanding market by increasing the capacity by an additional 1,200 tons in the second phase of construction to 2,400 tons per year. 

PVC/PSC offers superior design, molding, and processing capabilities at a reasonable cost and is increasingly being applied as a cover material for seamless airbag modules by Japanese and overseas automakers.

Zeon Kasei Mexico S.A. de C.V. (ZKMX) seeks to respond to increased automobile production in North America and Mexico by supplying PVC/PSC locally. It also intends to strengthen its collaboration with Zeon Kasei’s PSC Business Development Division and Zeon Corporation’s Manufactured Product Development Laboratory to meet market demand.

The use of PVC/PSC by automakers in Japan and overseas is projected to increase in the coming years. With this outlook, Zeon Kasei decided to construct the plant in Mexico, as well as one in China, from the standpoint of ensuring stable supply and realizing local production and consumption. 

As a result, Zeon Kasei is creating a tripolar manufacturing structure for its PVC/PSC business, with the Ibaraki Plant in Japan, Changshu Plant in China, and the plant in Mexico, to develop its global operations in line with the expansion of the automobile industry around the world.


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