Akzo Nobel expands capacity for polysulphide for sealants in China

By Liz White, ERJ staff

Arnhem, the Netherlands-Akzo Nobel is expanding its polysulphide and paper chemicals activities in China, investing about Euro 15 million in two new production facilities.

The group is building a polysulphides plant in Taixing, and a paper chemicals site in Guangzhou.

Akzo Nobel "already commands a strong position in the global polysulphides market," pointed out a statement from the group. "The new plant-to be built at the company's existing Functional Chemicals site in Taixing-will have annual capacity of 10 000 tonnes.

When the unit in Taixing becomes operational in early 2007, Akzo Nobel said, its German polysulphides plant-run as Thioplast Chemicals-will already have reached maximum capacity.

Polysulphides are precursors to synthetic sulphide rubbers used in two-component sealant formulations. These are utilised in insulating glass, glass-façade constructions and aircraft, said Dr Ralf Tatas, global business manager for Thioplast Chemicals GmbH.

Akzo Nobel has a strategy of supporting growth in five chemical segements "with good prospects for profitable leadership," said Leif Darner, the company's board member responsible for chemicals, in the company statement. "These two investments will consolidate and expand our well established activities in China and are a clear indication of our commitment to creating strong competitive positions in selected markets."

Figures from Akzo Nobel show global polysulphide demand as at about 28 kilotonnes in 2004, with worldwide market growth of with more than 8 percent a year recently. Akzo Nobel has a 56 percent share of the world market, with Toray taking 25 percent and Kasan another 17 percent.

"We expect similar but slightly lower growth rates for the years to come," said Tatas in a company statement. Pointing out that the firm has just expanded capacity to some 18 kt, Tata added that this should be "fully utilised towards the end of 2006."

Tata said that the market is "reasonably balanced" for 2005, but will be "definitely tight as from 2006." The new Chinese capacity will fulfill some of this growing demand. Akzo Nobel sees total demand rising to 30 kt this year and 32.6 kt in 2006.