Asahi Kasei Chemicals' US-based subsidiary Asahi Kasei Plastics North America will open a new production facility with an investment of about $30m at the Elm Industrial Park in Limestone County, Alabama.
The new facility, which represents Asahi Kasei's second US production facility, will be built on a 51 acre site and will process plastic resin into finished pellet products, which will be used to manufacture automobile components.
Asahi Kasei Plastics president John Moyer said the facility will be central to the company's strategy to increase presence in the South and provide ongoing support to customers.
"We see Alabama being very central to the strong recovery in the automotive industry and other markets we serve and are proud that we will be able to be a part of this exciting growth," Moyer added.
According to the company, the number of automobiles manufactured in North America is increasing in line with a recovery in the US economy and further growth is anticipated as the population increases.
With increasingly stringent environmental regulations and heightening environmental awareness among consumers, demand growth is particularly strong for plastic compounds that replace metal in automotive components to reduce vehicle weight, the company said.
