Kanthal expands its production capacity in Japan to meet demand for electrification

To meet the increased demand for sustainable heating solutions in the lithium-ion battery, semiconductor and automotive markets, Kanthal will expand its production capacity in Sakura, Japan, an investment of approximately SEK 100 million. The aim is to capture mid- and long-term market growth in Asia.

At the Kanthal production site in Sakura, Japan, the company manufactures products for electrification of industrial heating processes. The strong global growth in lithium-ion batteries and semiconductors is a driver for an increased demand for Kanthal’s sustainable heating solutions. In addition, a broad range of industries, such as steel and automotive, are looking to convert their heating processes from fossil fuel to electric solutions, making their production more energy efficient whilst also lowering their CO2 emissions.

The total investment is approximately SEK 100 million between 2024 and 2025 and includes the development of a new facility near the current premises in Sakura, as well as new equipment and a new layout. The expansion is expected to be fully operational in the end of 2025, increasing the current production capacity by approximately 60% and enabling additional job opportunities.

The investment will continue to ensure a strong local presence, improving manufacturing capacity, lead times and serviceability.

“We see this investment as necessary to meet our customers’ current and future needs. We expect a rapidly growing demand for our heating solutions, both for our traditional products but also for our high temperature process gas heaters, as they enable industries to make the green technology shift. The investment will ensure that we can capture the demand in Asia,” says Simon Lile, VP and President of Business Unit Heating Systems at Kanthal.

During the past year, expansions in Walldorf, Germany; Perth, Scotland; and Concord, USA; have been announced.