December 27, 2021
Notice Regarding Capital Investment in Performance Materials
KH Neochem Co., Ltd. (TSE: 4189, President and CEO: Michio Takahashi, "KH Neochem") announced that the Board of Directors meeting held on December 27, 2021, resolved to invest in new facility of KH Neochem's manufacturing plant, for the purpose of increasing the production capacity of refrigeration lubricant raw materials, a major product in the performance materials business.
1． Purpose of investment
Recently, there has been growing demand for KH Neochem's refrigeration lubricant raw materials due to the expansion of the air conditioner market such as in emerging countries and the shift to environmentally friendly refrigerants to protect the ozone layer and prevent global warming. Refrigeration lubricant is a lubricating oil used to circulate refrigerants inside air conditioners. With the tightening of international environmental regulations, demand for environmentally friendly refrigeration lubricants is expected to grow further in the future.
Through this capital investment, KH Neochem will strengthen and optimize the production capacity of the entire Chiba Plant, including for refrigeration lubricant raw materials, further enhancing profitability of the plant. By enhancing the supply of refrigeration lubricant raw materials, KH Neochem will help to bring about an environmentally friendly society.
2． Details of Investment
(1) | Location | 11-1 Goi Minami-kaigan, Ichihara City, Chiba Prefecture | |
(2) | Production item | Refrigeration lubricant raw materials, etc. | |
(3) | Total investment amount | Approx. 9.5 billion yen | |
(4) | Financing | Cash on hand and debt financing (planned) | |
3． Scheduled date | |||
(1) | Start of construction | June, 2022 (planned) | |
(2) | Completion of | July, 2024 (planned) | |
construction | |||
(3) | Start of production | August, 2024 (planned) | |
4． Future Outlook
This capital investment will have no impact on the consolidated financial results for the fiscal year ending December 31, 2021.
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