Kuraray America will invest 4bn yen ($51m) to expand production capacity of ethylene vinyl alcohol resin, sold under the brand name Eval, at its facility in Pasadena, Texas, US.
The annual capacity of Eval is expected to increase by 12,000t.
The expanded facility is scheduled to start operations in January 2014.
Eval applications include wallpaper, pipes for floor heating systems and thermal insulation boards for refrigerators.