Plants: SDK expands vinyl ester resin output in Shanghai; Domo to shut down BOPA line in Germany

Japanese chemical firm Showa Denko has expanded production lines to produce vinyl ester resin (VE) and synthetic resin emulsion (EM) at its Chinese subsidiary Shanghai Showa Highpolymer Co. (SSHP) and has increased production of VE and EM there, aiming to expand its functional resin business in China.

The market for electronic parts such as liquid crystal displays (LCDs) and touch panels has been expanding due to the progress in telecommunication technologies including 5th Generation mobile communication system. As a result, the demand for VE, which is used in the process to produce electronic parts including LCDs and touch panels, has been rapidly increasing in China. In addition, since VE has excellent corrosion resistance and chemical resistance, the demand for VE for use as corrosion-resistant inner lining material has also been increasing. This use includes inner lining for desulfurization equipment increasingly introduced to thermal power plants to prevent air pollution, wastewater treatment equipment for electronic parts factories, garbage plants and storage tanks for chemicals.

In China, regulation against volatile organic compound (VOC) as an environmental protection policy started in 2015, and, since then, there has been strict regulation for use of paints and adhesives containing organic solvents. As a result, switching over to aqueous paints and aqueous adhesives utilising EM has been in progress, and therefore the demand for EM has been increasing. Responding to these movements, SHHP increased the capacities of its production lines to produce VE and EM to about twice as much as before.

Meanwhile in other news, Domo Chemicals, a producer of engineering materials for a diverse range of markets, plans to stop and close its third line of Biaxally Oriented PA films (BOPA) at its plant in Leuna (Germany), effective from August 2020. Affected employees have been informed and other operations at the Leuna plant will not be impacted by the move. It says the “difficult decision” was reached as a result of global overcapacity for nylon films.

With the acquisition of Solvay’s European PA66 business at the beginning of this year, Domo has become an integrated PA6 and 66 player worldwide. Despite the current market slowdown, which is affecting the automotive and other industrial segments served by Domo’s “Polymers & Intermediates” and “Engineering Materials” units, the company remains on course to achieve its global growth objectives. These include, among others, the continued development of sustainable solutions for customers, in accordance with the highest corporate, social and environmental responsibility standards.

Domo says its nylon film business remains a key asset. “It forms an integral part of the supply chains related to segments such as pharmaceuticals, medical, and food packaging, which have all proven to be so essential during the Covid-19 period,” adds the firm.

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