Denka/SCG in jv to set up acetylene black plant in Thailand

Japan’s Denka Company Limited says that it will establish a joint venture company to operate a plant for manufacturing an acetylene-based carbon black jointly with Thai chemical firm SCG Chemicals Public Company, a wholly owned subsidiary of listed Siam Cement Public Company Limited, in Map Ta Phut, Rayong Province, Thailand, as announced last year. The plant will have a capacity of 11,000 tonnes/year. With an investment of US$400 million the plant is expected to be completed in 2026.

Denka/SCG in jv to set up acetylene black plant in Thailand

The joint venture company will be established for the purpose of improving production and sales systems for Denka’s acetylene black (Denka Black and Denka Black Li), a type of carbon black. In addition to its conductivity, Denka Black has low amounts of metal, sulphur and other impurities due to Denka’s proprietary thermal decomposition and synthesis technology.

Denka, which already operates three acetylene black plants outside Japan, says the facility will serve markets including lithium-ion batteries for electric vehicles and high-voltage power cables of offshore wind farms, and it is anticipated that the demand related to these applications is expected to expand further in the future.

Denka also positions Denka Black/Li as a key product in the ICT & Energy focus area.

The jv company will comprise of shareholders as follows:

Denka Company Limited 25%

Denka Chemicals Holdings Asia Pacific Pte. Ltd. 35%

SCG Chemicals Public Company Limited 40%