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CORPORATE NEWS [latest news list] July 19, 2011
Response to Expanding Demand from Tighter Environmental Regulations
New Production Facility for Fluoroelastomer DAI-EL at Changshu Factory in China
with Mass Production Start for January 2013

- Promoting the Use of Fluoroelastomers in the Field of Automotives -

Daikin Industries, Ltd. has decided to establish a new production facility for the fluoroelastomer DAI-EL at the Changshu Factory of its subsidiary Daikin Fluorochemicals (China) Co., Ltd. (Headquarters: Changshu, Jiangsu), a company that manufactures and sells fluorochemical products in China. Mass production is scheduled to start from January 2013 at a planned capital investment of approximately three billion yen.

The establishment of this new production facility combined with the Yodogawa Plant in Japan (Settsu, Osaka Prefecture) and the Lyon Factory in France will form a global three-base production system for the Daikin fluoroelastomer manufacturing system and increase production capacity to approximately 60% over current capacity.

The fluoroelastomer DAI-EL excels at resisting change in shape and maintains its form for a long period of time even when pressure is applied. It has superior heat and oil resistant properties, and when used as parts in applications such as automobile engine rooms, fuel systems, and oil seals, it helps to prevent fuel and oil leaks and reduces the environmental impact over a long time.

Recently, the global tightening of environmental regulations for automobiles (fuel mileage improvement, exhaust emission control, reduction of fuel permeation), has proceeded forward, and a switchover is underway to fluoroelastomers that reduce the environmental load from other materials. Conversely, the number of automobiles being manufactured around the world is increasing, and a conspicuous expansion is seen, especially in the Chinese market. Furthermore, automobile manufacturers having factories in China are shifting to local procurement, including procurement from Chinese local manufacturers, for important safety parts (oil seals and fuel hoses) that use fluoroelastomers, and the fluoroelastomer market in China continues to rapidly expand.

The fluoroelastomer market in China was 8 billion yen in 2010, and in 2015 it is expected to grow 1.6 times that amount to 13 billion yen.

By newly establishing production facilities, Daikin aims to raise its top share from its current share of around 10% of the fluoroelastomer market in China to 30-40% for 2015 and to expand business.

  For more information, please contact
     Daikin Industries, Ltd.
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