By Frank Esposito
SENIOR STAFF REPORTER
Published: May 20, 2014 9:46 am ET
Updated: May 20, 2014 9:50 am ET
Asahi Kasei Plastics North America Inc. plans to build a major compounding plant in Athens, Ala.
The plant will have annual capacity of almost 70 million pounds and will make compounds based on polypropylene, nylon 6/6 and similar materials, primarily for the automotive market. The new site is expected to open in early 2016.
In a May 20 news release, company officials said that the number of vehicles manufactured in North America is increasing in line with a recovery in the U.S. economy, and that 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,” officials said.
Asahi Kasei already operates a compounding plant in Fowlerville, Mich., that has more than 200 million pounds of annual capacity. The firm ranks as one of North America’s 30 largest compounders and concentrate makers. | 
