Nippon taps Toyo to build Texas synthetic resin line
By MARI IWATA
TOKYO -- Toyo Engineering Corp. said Wednesday it has received a contract to build a 15,000-tpy synthetic resin production plant in Houston, Texas, from Nippon Synthetic Chemical.
Construction of the plant is scheduled to begin this summer and to be completed at the end of 2014, Toyo Engineering said in a statement.
The value of the deal wasn't specified.
The project will add the third production line to Nippon Synthetic's two existing lines to meet rising global demand for plastics for food packaging, and to take advantage of less costly petrochemical feedstocks in the US where supply has been abundant, thanks to booming shale oil and gas production, the statement said.
Several Japanese petrochemical companies have announced plans to invest in the US in response to the shale boom. On Monday, Idemitsu Kosan Co. and Mitsui & Co. said they will study feasibility of a petrochemical plant in the US.
Dow Jones Newswires
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