M'bishi Chem to boost automotive alumina fiber output

TOKYO (Nikkei) -- Mitsubishi Plastics Inc. plans to increase its production capacity for alumina fiber used in the emission control devices of cars by over 10% next fiscal year.

The Mitsubishi Chemical Holdings Corp. (4188) unit, which holds a roughly 80% global market share is this field, is responding to growing demand spurred by tougher emissions rules.

Alumina fiber is used as a substrate support mat in catalytic converters and diesel particulate filters due to its strong heat resistance and other properties. It is a high-performance material that can act as a cushion even at temperatures exceeding 1,600°C.

Mitsubishi Chemical plans to spend an additional 2 billion yen or so at a plant it is expanding in Kagawa Prefecture. It intends to install another production line capable of producing 400 tons a year, bringing the facility's annual output capacity to 3,000 tons.

The firm will receive several hundred million yen in subsidies from the Ministry of Economy, Trade and Industry for plants making cutting-edge products. Its overall output capacity for automotive alumina fiber, including a Niigata Prefecture factory, is expected to grow about 7%.

The company has been unable to keep up with orders as Europe, China and other nations move to tighten automobile emission rules. And plans to introduce emission regulations for construction machinery are expected to spark even more demand for the fiber.

Mitsubishi Chemical may boost output further, with an eye on doubling sales of the product from the fiscal 2011 level to 20 billion yen in fiscal 2015.