Due to the slowdown in local market demandin Japan and the increasing improvement of China's environmental(Polypropylene Non Woven Fabric Company) regulations,Japanese companies are seeking to establish themselves in the Chinese market.

Nikke will invest 300 million yen (about2.83 million US dollars) to introduce a new production line at its subsidiary Ambic's Jiangyin plant in Jiangsu Province. It is expected that by 2022, the project will triple the annual production capacity of Japan and China to 580,000 square meters. The plant currently produces filtration(China PP Non Woven Fabric Vendor) units for thermal power stations, but has never produced incinerator filters.

Ambic produces incinerator filters at the Kagogawa plant in Hyogo Prefecture, western Japan. The plant has an annual production capacity of about 200,000 square meters. In fiscal year 2018, which began in December last year, the company plans to supply 70,000 square meters of filtration products to customers in Japan.

Due to economic growth and a surge inwaste, Nikke expects the number of incinerators in China to increase more than tenfold.

At present, Nikke exports a small amount of products to China. By the end of 2022, when the new production line was completed, the company hopes to sell about 400,000 square meters of filtration products in China.

The filter of the incinerator needs to bemade of high-performance non-woven fabric(Non Woven Polypropylene Roll On Sales) to withstand high temperatures and chemical resistance. Ambic's nonwovens are known as the world's finest fibersand are resistant to blockage. Nikke's filters last for five years and areabout 50% longer than competing products.

Competitors are Chinese manufacturers and European companies. Ambic hopes to increase sales in China by promoting the performance of its filters and low replacement costs, and hopes to increase its market share in China from the current 3% to 12% by 2022.