- Investment will increase capacity by 40,000 tonnes, reaching 70,000 tonnes per year.
- New capacity to start in February 2018; new compounding facility operational by August 2017.
- Nylon demand grows due to replacement of PVDC films in packaging.
- Expansion creates 50 new jobs, increasing UCE's workforce to 500.
Capacity Expansion
Ube Industries, Ltd. will invest in additional nylon manufacturing capacity at its subsidiary, UCE (UBE Corporation Europe S.A.U.) in Castellon, Spain. The expansion will add 40,000 tonnes, bringing the total capacity to 70,000 tonnes per year. The new capacity is expected to start operation in February 2018, with a new compounding facility set to begin operations in August 2017.
Market Demand
Demand for nylon is increasing, particularly as it replaces polyvinylidene chloride (PVDC) films in packaging applications such as food, toiletries, and detergents. This shift is driven by a growing interest in environmentally friendly products. To meet this demand, UBE expanded nylon 6 capacity by 10,000 tonnes per year in Castellon last year, establishing a quick-response supply system for European, North, and South American customers.
Technological Advancements
The new nylon plant will utilize UBE's proprietary technology to manufacture various types of medium and high viscosity nylons and copolymers. These materials are used in technical applications such as the automotive industry, food packaging, industrial monofilaments, fishing nets, and engineering components. The capacity expansion aims to improve UBE's global response to customer needs.
Job Creation
The expansion will create 50 new jobs at UCE, increasing the total workforce to 500. Over the past five years, UCE's workforce has grown by 25%. This capacity addition will further reinforce the downstream integration of UCE in Castellon, with a focus on expanding product applications and increasing high added-value products.
Global Production
UBE Group is one of the largest nylon producers for engineering applications, with a total annual production capacity of 158,000 tonnes across three plants worldwide. The production capacity is distributed as 53,000 tonnes in Japan, 75,000 tonnes in Thailand, and 30,000 tonnes in Spain, which will increase to 70,000 tonnes after 2018.
