In March and April of 2012, Nippon Ekitan plans to expand dry ice production facilities respectively in Chiba and Mizushima to increase production of block dry ice (25 kg units). This is to expand cutting operations to meet the requirements of the market. The investment totals 1.2 billion, with each plant getting about half.

In the Eastern Japan Region, Kokusai Tansan, a subsidiary of the company located on the grounds of the Idemitsu Kosan refinery in Chiba, will expand its facilities to have 2 dry ice presses (50 t/d), with a production line to cut and package dry ice. The expansion will be the equivalent of 1.75 times the existing capacity, expanding to 28,000 tons on a yearly basis. In the Kansai Area, the company will likewise install 2 new dry ice presses (50 t/d) on the grounds of the Mitsubishi Chemical plant in Mizushima, completely refurbishing its dry ice production plant to have an annual production capacity of 12,000 tons.

With this dual expansion in Chiba (Chiba Prefecture) and Mizushima (Okayama Prefecture), the supply setup of the company in Eastern Japan will increase the annual supply capacity which had been 42,000 tons a year to 54,000 tons a year by 28.6%. In Western Japan the supply capacity which had been 51,000 tons a year will increase to 61,000 tons a year, up by around 9%. This will respectively exceed the 49,000 ton level the company supplies to the Eastern Japan Region and the 51,000 ton level the company supplies the Western Japan Region.

Regarding what led the company to refurbish the Mizushima plant, a spokesman from the company noted that “In February of next year, Asahi Kasei Chemicals will terminate the production of carbon dioxide and dry ice at its Mizushima plant. To avoid disruption in supply to the markets in the Western Japan Region caused by this, we will create a stable supply setup with the crude carbon dioxide which we ourselves will secure from the Mizushima plant of JX Nippon Oil and Energy as a new source of procurement.”

Currently the annual demand for dry ice comes to 330,000 tons, while the demand peaks in July and August, and again in November and December. Nippon Ekitan, which markets 100,000 tons a year, sells 40,000 tons during the 2 months of the summer peak and 32,000 tons at the year end peak period. This means that the majority of its sales coincide with the peak demands, and chiefly in the major cities. Currently the annual production capacity of the company amounts to 98,000 tons. The company copped with the peak period during this past exceptionally hot summer by such expensive measures as transporting dry ice between regions and by importing about 1,000 tons from Korea.