Daikin Expanding FEP Capacity in Late 2012

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When talking about FEP production, it seems that all we have heard are “negative” words:

• shortage

• significant lead-time

• price increases

• tight supply

• demand above predictions

• demand outpacing supply

Finally a twinkle of light in what seemed like an ever increasing black hole in FEP production and supply to the cabling industry. On Tuesday, Daikin America, Inc. announced that they will expand FEP and EFTE capacity in their Decatur, Alabama facility. The expansion, a $60 million capital investment, will be complete in October 2012 and will increase FEP supply by over 50%.

Key quotes from the Daikin America Inc. press release include: “Worldwide demand for fluoropolymers is increasing and as the global economies continue to recover, the need for specialty, melt processible grades such as FEP and ETFE is growing sharply. “Application areas such as wire and cable, photovoltaic (PV), aerospace, and automotive are just some of the major markets where FEP and ETFE are seeing increased use”, said Donald Shaw, Director of Sales for Daikin America.

Gary Stanitis, Director of Marketing at Daikin America said, “The bulk of the immediate demand growth is for FEP, driven by the strength of the plenum cable market. Daikin remains strongly committed to the plenum cable market, which continues to be the single largest application for fluoropolymers in North America.”

CSC will continue to be the leader in communicating any and all changes in the FEP Supply vs. Demand situation, and today I am glad to be able to locate the light at the end of the tunnel!

Read the full press release on Daikin America’s website now.

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