Mitsubishi Chemical Plans Second U.S. Carbon-Fiber Factory

Mitsubishi Chemical Holdings Corp. expects to open a second plant somewhere in the U.S. in about three years to supply carbon fiber to the auto industry, The Nikkei reports.

Much of MHC's output to date has been for sports equipment and compressed-gas transport tanks. But the company anticipates an upswing in automotive demand as carmakers use carbon-fiber-reinforced plastic to lighten their vehicles.

The company's expansion comes as a report by Lux Research Inc. in Boston predicts the global market for automotive carbon-fiber-reinforced plastic will create a $6 billion annual market by 2025. The firm's forecast is double its previous outlook.

MHC's new U.S. facility, which could cost as much as $336 million, will begin operations as early as 2018 with initial annual capacity of 2,000 tons. Output could double by 2020, according to the newspaper. It says MCH plans to raise its global capacity 50% by then.

The new factory will be constructed and operated by MCH's Mitsubishi Rayon subsidiary. The unit currently operates a carbon-fiber plant in California with capacity to make 2,000 tons of the material. It operates two other such facilities in Japan with combined annual output of 8,100 tons.