Kanthal will expand its production capacity in Sakura, Japan to capture mid and long term market growth in Asia.
The company will invest approximately $A14 million (SEK 100 million) to expand the manufacture of products for the electrification of industrial heating processes.
The strong global growth in lithium-ion batteries and semiconductors is a driver for an increased demand for Kanthal’s sustainable heating solutions.
In addition, a broad range of industries, such as steel and automotive, are looking to convert their heating processes from fossil fuel to electric solutions, making their production more energy efficient whilst also lowering their CO2 emissions.
The total investment is approximately $A14 million between 2024 and 2025 and includes the development of a new facility near the current premises in Sakura, as well as new equipment and a new layout.
The expansion is expected to be fully operational in the end of 2025, increasing the current production capacity by approximately 60 per cent and enabling additional job opportunities.
The investment will continue to ensure a strong local presence, improving manufacturing capacity, lead times and serviceability, according to Simon Lile, VP and president of Business Unit Heating Systems at Kanthal.
“We see this investment as necessary to meet our customers’ current and future needs,” Lile said.
“We expect a rapidly growing demand for our heating solutions, both for our traditional products but also for our high temperature process gas heaters, as they enable industries to make the green technology shift.
“The investment will ensure that we can capture the demand in Asia.”
During the past year, expansions in Walldorf, Germany; Perth, Scotland; and Concord, USA; have been announced. This investment is another example of how Kanthal is expanding its production capacity to meet demand, the company said.