Taiyo Nippon Sanso (TNS) will invest in the Taiwanese PSA manufacturer Benson Industrial Gases (BIG) Technology, headquarted in Taipei and capitalised at ¥11.5bn – according to The Gas Review issue 380.
TNS will also underwrite some of the capital increase by third party allotment implemented by BIG. TNS will also acquire 30% of BIG stock – which was set to be transferred in November.
TNS has been engaged in developing its PSA gas generator business primarily in Japan during the past 30 years. Expanding its business overseas, primarily in Asia has become an urgent issue for further development of its PSA business. The company, therefore, signed an agreement with BIG regarding the commissioning of manufacturing with them.
As of last summer BIG has been marketing nitrogen PSA under the TNS brand name in Asia. The installation is handled by the BIG plant in Suzhou, and this investment contract is an extension of that relationship.
According to Masanobu Narita, manager of the machinery and equipment business of TNS, this investment will involve expansion into Asia and will secure a sales route. He stated, “It’s important in the sense that we’ll be able to procure sorbent material produced in China.”
CMS made in China uses phenol resin, which is higher priced than palm husks. They use scrap water absorbent sponge, called floral foam, which can be commercialised at an extremely low price.
BIG procures CMS from a materials producer located in Anhui Province and TNS too will be able to get hold of the CMS raw material through this route. The nitrogen PSA of TNS uses CMS from Japanese producers as well as that which it produces in house. The product produced in China will be added to these, as the raw material for its own CMS, making it a rather rare global PSA producer having three types of CMS in its product line.
With this investment in BIG, TNS anticipates that sales of its PSA business – including maintenance – will be ¥2.5bn in 2016, about twice as it is now.