South Korea to Increase Exports to Japan

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--In the wake of Japan's recent earthquake, tsunami, and subsequent nuclear crisis, more than 130 countries have pledged to lend assistance to help stabilize the country. Power and supplies, both industrial and otherwise, have been of upmost concern. Countries such as South Korea are ramping up production in many industries, including chemical processing and industrial manufacturing, in order to aid Japan.

In Japan, Mitsubishi Gas Chemical Company Incorporated (TYO:4182) (MGC) (Tokyo) has lost 104,000 tons per year (t/yr) worth of hydrogen peroxide capacity due to significant damage accrued at its Kashima plant in Ibaraki prefecture. MGC, the country's top producer of hydrogen peroxide, markets the chemical for use in cleaning electronics, as well as an etching and stripping agent. The company has an annual production capacity of approximately 155,000 t/yr and is currently placing orders through Asia and North America for standard and high-purity hydrogen peroxide. South Korea is the closest producer of high-purity hydrogen peroxide and Samyoung Pure Chemicals Company Limited (Seoul) was one of the first companies to receive an order from MGC. Samyoung will ship 500 tons of high-purity hydrogen peroxide by April 13 from Ulsan port on the Sea of Japan.

Portable butane canisters are also currently in high demand in Japan. These are typically used to fuel residential gas grills and gas stoves. Daeryuk Can Company Limited (SEO:004780) (Seoul), which typically has an annual production capacity of 200 million butane canisters, has received orders from Japan totaling 5 million each week since the earthquake. The company is currently booked out through the end of April in order to prioritize these orders. Taeyang Industrial Company Limited (KDQ:053620) (Cheonan, South Korea), which also has an annual production capacity of 200 million canisters, is another maker that is increasing exports to Japan. In a typical year, Taeyang exports approximately 30 million canisters to Japan, making up about 60% of its total exports. Taeyang is increasing yearly exports to Japan by 20 million, for a total of 50 million canisters this year in response to the earthquake.

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