“This investment is yet another step for us to strengthen our presence in Asia and it is fully in line with our strategies going forward. With this new capacity Perstorp will cement its position as one of the leading producers of Neopentyl Glycol, making it possible to take part of the fast and strong growth in this region”, President and CEO Martin Lundin says.
Planned to be up and running during the second half of 2012, the new capacity will be established at Perstorp’s manufacturing site in Zibo in China through Perstorp’s joint venture Shandong Fufeng Perstorp Chemical Co., Ltd.
“The investment is driven by the increased demand for Neopentyl Glycol in Asia, but specifically in China, and will amount to 40,000 MT/year. The Chinese market is rapidly growing thanks to an increased awareness of the environmental benefits of powder coatings, the main application for Neopentyl Glycol”, says Mats Olofsson, Vice President Resin Intermediates.
The polyalcohol Neopentyl Glycol is increasingly being used in environmentally friendly powder coatings for architectural applications, domestic appliances, transportation and automotive applications and general industrial applications. New application areas are being developed, like powder coatings curing at lower temperatures, giving good opportunities for the future. Perstorp is producing Neopentyl Glycol in its production facility in Perstorp, Sweden.