"The investment at this time is necessary in order for Perstorp to participate in the growth in the market. The growing demand is influenced by the increased use of environmentally friendly powder coatings. Neopentyl glycol is mainly used as an intermediate in the manufacturing of powder coatings resins but also in other application areas", says Bengt Sallmén, Executive Vice President Coating Intermediates.

At the same time a decision to invest in increased capacity for TMP (Trimethylol propane) and the specialty polyol Di-TMP (di Trimethylol propane) has been taken. The driver for the growth of these two products is its use in radiation cured coatings systems which are used in printing inks and in coatings and lacquers for plastic and metal substrates. These systems are the preferred choice in many coatings applications due to their low environmental impact and excellent technical performance.

The capacity increase in TMP will be around 5,000 tons per year. Perstorp is investing in these products to maintain its leading positions and participate in the growth of the market.

The new capacities for all three products are expected to be on stream during the second half of 2005.

Total investments for the capacity increases will be around 100 MSEK (~11 M€).