Asahi Yukizai to Build New RCS Factory in India

TOKYO, May 15 (Pulse News Wire) – Asahi Yukizai Corporation (4216.T) announced plans to construct a new factory in Andhra Pradesh, India, to meet growing demand for resin-coated sand (RCS). The company decided to build the facility due to increased production activities among automotive and agricultural machinery manufacturers based in India, driven by expanding domestic markets.

The new plant, set to commence operations in October 2027, will have an annual production capacity of approximately 120,000 tons, which is about 1.2 times greater than its existing facility in Gujarat. The investment for the new factory is estimated at around ¥7.8 billion rupees and will create approximately 40 jobs. The project is expected to begin construction in September 2026.

Asahi Yukizai's subsidiary, ASAHI MODI MATERIALS PRIVATE LIMITED, located in Gujarat, currently manufactures and sells RCS products with a capital of ¥3 billion rupees. The subsidiary’s shareholders include Asahi Yukizai Corporation (4216.T) and Modi Rubber Limited. The company stated that the impact on its current performance will be negligible.

Any significant developments related to this project will be disclosed promptly.