Nippon Shokubai, a leading Japanese chemical manufacturer, has been actively expanding its acrylic acid (AA) production capabilities in Indonesia to meet the growing global demand for superabsorbent polymers (SAP), essential components in products like disposable diapers. In May 2023, the company inaugurated a new AA facility in Cilegon, Banten Province, operated by its subsidiary, PT. Nippon Shokubai Indonesia (NSI). This facility added 100,000 metric tons per year (MT/Y) to their production capacity, bringing NSI’s total AA output to 240,000 MT/Y.
Building on this expansion, in August 2024, Nippon Shokubai announced plans to further enhance NSI’s capabilities by constructing a new SAP plant with an annual capacity of 50,000 MT. This development will increase NSI’s total SAP production capacity to 140,000 MT/Y upon its expected commercial operation commencement in July 2027. The investment for this project is approximately $110 million.
These strategic expansions are driven by the steady global demand for SAP, particularly in regions with rapidly increasing populations. Nippon Shokubai’s integrated production model, spanning from AA to SAP, positions the company to effectively meet this demand. The company is also considering optimizing its global SAP supply network by potentially phasing out older, less efficient production facilities in Himeji, Japan.
In addition to capacity enhancements, NSI has achieved ISCC PLUS certification for its AA, acrylates, and SAP products, enabling the production and marketing of biomass-derived and Halal-certified products. This initiative aligns with Nippon Shokubai’s commitment to reducing environmental impact and contributing to a circular economy. By establishing a global supply system for certified products, the company aims to meet the increasing demand for sustainable solutions in Indonesia, Southeast Asia, and worldwide.
