Quick Takeaways
  • Sekisui Chemical Aichi Plant expands domestic production capacity.
  • New facility requires approximately JPY 2 billion investment.
  • Operations are scheduled to begin February 2029.

Sekisui Chemical Plans New Automotive Parts Plant

Sekisui Chemical announced on October 7 that its wholly owned subsidiary, Sekisui Techno Molding Co Ltd, will establish the Aichi No. 2 Plant in Gamagori, Aichi Prefecture, Japan. The facility will manufacture injection-molded automotive interior and exterior parts, with total investment expected to reach approximately JPY 2 billion. Operations are scheduled to begin in February 2029. The project is intended to strengthen the company's domestic manufacturing capability while preparing its production network for changes in vehicle assembly locations and component requirements across the Tokai region.

New Plant to Increase Domestic Capacity by 40%

The new facility will be constructed on the premises of Sekisui Nano Coat Technology Co Ltd and will have a total floor area of 4,350 square meters. Once operational, it will become Sekisui Techno Molding's fourth injection-molding production site in Japan and its third facility in the Tokai region. The plant is expected to increase the company's domestic production capacity by approximately 40%. Sekisui Techno Molding also plans to expand the facility when necessary, providing additional flexibility as automotive production requirements evolve in the domestic market.

Investment Targets Larger Molded Components

The investment is designed to address the reorganization of vehicle assembly sites in the Tokai region and an anticipated shift toward larger injection-molded components. According to the company, parts integration and vehicle lightweighting associated with Japan's vehicle electrification are expected to influence component requirements. Larger integrated parts can change manufacturing capacity needs and production processes, creating a need for facilities capable of supporting evolving component specifications. The planned plant therefore combines additional capacity with a strategy aimed at adapting Sekisui Techno Molding's domestic production footprint to changing automotive manufacturing requirements.

Smart Manufacturing and Sputtering Technology

The company will introduce smart manufacturing technologies into the new production lines as it prepares for a future decline in the working-age population. Sekisui Techno Molding also aims to improve surface-processing technologies for automotive materials by combining its capabilities with Sekisui Nano Coat Technology's sputtering technology. Sputtering uses ions that strike a metal in a vacuum, ejecting metal atoms that are then deposited onto another material's surface to create a thin film. The combination is intended to support advanced surface processing while improving the manufacturing capabilities available for automotive interior and exterior components.

Industry Impact & Outlook

The project positions Sekisui Techno Molding to expand domestic injection-molding capacity while adapting its manufacturing network to vehicle electrification, parts integration and demographic changes affecting industrial labor availability. A 40% capacity increase could provide additional production flexibility as vehicle assembly locations in the Tokai region are reorganized and larger molded components become more important. The planned use of smart manufacturing and enhanced surface-processing capabilities also indicates a broader effort to improve production efficiency and technology capability alongside capacity expansion. The facility's planned 2029 start gives the company time to prepare for these changing automotive component requirements.

Frequently Asked Questions

What is Sekisui Chemical's new Aichi plant designed to manufacture?
Sekisui Chemical's new Aichi facility will manufacture injection-molded automotive interior and exterior parts while expanding domestic production capacity for changing vehicle requirements. The Aichi No. 2 Plant will be established by Sekisui Techno Molding, a wholly owned subsidiary, in Gamagori, Aichi Prefecture. The facility will have a total floor area of 4,350 square meters and represents an investment of approximately JPY 2 billion. Operations are scheduled to begin in February 2029, and the plant is expected to increase domestic production capacity by approximately 40%.

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