Nippon Shokubai, the leading global supplier of absorbent materials for disposable diapers, is set to invest $110 million to expand its production capacity in Indonesia by more than 50%, according to sources from Nikkei. The expansion will occur at the company’s Banten province site, operated by its Indonesian subsidiary, and is expected to be operational by 2027.
The Osaka-based company aims to meet the increasing demand for superabsorbent polymer (SAP), especially in Southeast Asia and other emerging economies, where the market is projected to grow at a rate of 5% annually. SAP, which is also used in products like pet sheets and air fresheners, faces pricing pressure due to an influx of cheaper products from Chinese manufacturers.
In response to market challenges, Nippon Shokubai is innovating by producing SAP from biomass-derived chemicals in Indonesia, aligning with the growing demand for eco-friendly and decarbonized products. This strategic move comes as part of the company’s effort to enhance its competitiveness by offering value-added, sustainable solutions. The company’s expansion plans contrast with Japanese manufacturer Sanyo Chemical Industries, which recently announced its exit from the SAP business, dissolving its subsidiaries in Japan and Malaysia. Nippon Shokubai’s investment underscores its commitment to maintaining a leading position in the absorbent material market.
