Perstorp, Sweden -- Perstorp is extending capacity for the polyalcohol neopentyl glycol by setting up production at its manufacturing site in Zibo, China. Production is planned to start during the second half of 2012, said Perstorp's 3 May announcement.
"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," said president and ceo Martin Lundin, in the Perstorp statement.
The new capacity will be established in Zibo 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 kilotonnes per annum. The Chinese market is rapidly growing thanks to an increased awareness of the environmental benefits of powder coatings, the main application for neopentyl glycol," said Mats Olofsson, vice president for resin intermediates, in the statement.
Perstorp said neopentyl glycol is increasingly being used in environmentally friendly powder coatings for architectural uses, domestic appliances, transport and automotive applications and general industrial uses. New applications are being developed, such as powder coatings that cure at lower temperatures, giving good opportunities for the future.
Perstorp currently makes neopentyl glycol in its facility in Perstorp, Sweden.