Expansion, Fourth Production Line 2008/2009
Veendam, November 29 2006
Just after completing their Euro 20 mln investment program of the last 2 years, Kisuma Chemicals BV has decided to expand its specialty magnesium compounds production again. For this, a fourth production line will be installed at its Veendam plant in the Netherlands.
Mainly for urgency reasons this line will be constructed in two consecutive phases. The first phase, that will create an immediate extra capacity of approx 5000 mt, will be completed before the end of 2007. Completion of the total project is scheduled by the end of 2008. The required investments will be in the range of Euro 50 mln, equally split between the first and second phase.
After expansion, the name plate capacity of the plant will be close to 30,000 mt per annum. Of this, approx 20,000 mt (2 lines) is dedicated for the production of Alcamizer®. These are synthetic hydrotalcites mainly used in non-lead PVC heat stabilizers. Other products include DHT-4A, a well-known halogen scavenger for polyolefins, and Kisuma 5®, being synthetic magnesium hydroxide used as flame retardant in non-halogen wire and cables and as smoke suppressor in rigid PVC.
In 2000, the joint PVC producing and processing industry in EU has made a voluntary commitment to eliminate the use of lead containing stabilizers step-by-step by 2015. Kisuma’s Alcamizer® products are key components for so-called Ca-Zn stabilizers. This type of stabilizer is now considered to be technically and economically completely equivalent with lead, yet without any major environmental or health concern. In the past 5 years almost all flexible PVC (mainly wire and cables), as used in the EU, has already switched to non-lead. Most probably in anticipation of the upcoming so-called REACH regulations, that are aimed to control the future use of hazardous chemicals, an accelerated switch to non-lead stabilizers in rigid PVC applications is now being observed too. Due to this, an acute hydrotalcite shortage became imminent by mid of this year, despite the numerous capacity increases that were substantiated in the recent past.
The scheduled expansion of in total approx 10.000 mt is supposed to be sufficient to cover the projected market needs for Alcamizer® for the medium term. In addition to this it will cater for the increasing demands for DHT-4A and Kisuma® products as well. Due to the potential market size of rigid PVC applications, however, for the longer term additional capacity may still be needed in order to safeguard the future suppliability and to maintain the company’s global leadership in their markets. Because the quoted first expansion phase fits within the limits of the existing operation permits, completion may be achieved relatively quickly and will get the highest priority.
In the meantime, the current product shortage will be minimized as much as possible by means of additional supply from Kisuma’s mother company in Japan. Kisuma Chemicals BV is the European affiliate of Kyowa Chemical Industry Co., Ltd. from Japan.
Since 1999 the company operates a plant in the Netherlands that is serving the polymer producing and processing industry with magnesium based heat stabilizing, halogen scavenging and flame retardant products. Due to the quoted expansion this plant will become the world’s largest production site of synthetic hydrotalcites (layered double hydroxides). Kisuma is one of the fastest growing companies in the North of the Netherlands. In the last 5 years the turn-over has more than doubled, to exceed Euro 40 mln in 2006. In honor of this, in 2005 the company was rewarded with the prestigious Top Gazelle award. Also in 2006 it was one of the nominees. Currently Kisuma employs approx. 60 people. For the near future a further increase, both in turn-over and in personnel, is foreseen. Kyowa Chemical Industry Co., Ltd is an independent worldwide leading manufacturer and supplier of magnesium and aluminum fine chemicals, mainly for pharmaceutical and plastics applications. Currently Kisuma Chemicals BV is their only overseas branch. Worldwide (excluding Asia-Pacific) marketing and sales of their industrial products is coordinated from Kisuma’s head office in Veendam, the Netherlands.