Asahi Kasei Chemicals began local manufacture of Leona polyamide 661 compounds2 for automotive applications in Indonesia in August 2013, as a part of an ongoing reinforcement of its performance plastics business in Asia. With this development, Asahi Kasei Chemicals becomes the first plastic manufacturer to produce polyamide 66 compounds locally in Indonesia. Compounding is performed on consignment by P.T. Nippisun Indonesia, a local Indonesian compounder.

By leveraging its strength in compound technology development, Asahi Kasei Chemicals is advancing a strategic expansion of its performance plastics business, aiming for market leadership in Asia. Particular focus is placed on compounds for automotive applications, with four manufacturing bases around the world. At the same time, demand for polyamide 66 for automotive applications in Indonesia is growing substantially, with automobile production forecasted to increase from 1 million units in 2012 to 1.5 million units in 2016.

While Asahi Kasei Chemicals had previously supplied the Indonesian market with polyamide 66 compounds from its subsidiary Asahikasei Plastics (Thailand) Co., Ltd., it was determined that the growing Indonesian market would be better served through local supply.

The decision was thus made to consign manufacture of polyamide 66 compounds to P.T. Nippisun Indonesia, a joint venture with Nippon Pigment Co., Ltd., enhancing the swift supply of products to customers in Indonesia, mainly Japanese automotive manufacturers. P.T. Nippisun Indonesia has an established track record as a contract manufacturer of performance plastic compounds such as Xyron modified polyphenylene ether (mPPE).