Industry News

REXtac & DL Chemical Form JV to Build APAO Plant for HMAs

Published on 2021-07-07. Edited By : SpecialChem

TAGS:  Hot-melt Adhesives    

REXtac & DL Chemical form JV to Build APAO plant for HMAs REXtac and DL Chemical has established a joint venture (JV) to construct and operate an amorphous poly alpha olefin (APAO) manufacturing plant located in Yeosu Industrial Complex in South Korea.

With an investment of USD 134 million, the environmentally focused APAO plant will have an annual capacity of 88,000,000 pounds per year. The APAO hot-melt polymer and adhesive is widely used in a variety of applications, including hygiene products, HVAC filters, automotive interiors, and other industrial applications.

Environmentally Focused Plant in South Korea

The JV will leverage DL Chemical’s network to expand into the hot-melt adhesive (HMA) market, valued USD 10.4 Billion. This partnership will combine DL Chemical’s research and development capabilities with REXtac’s APAO manufacturing technology and R&D.

Nick Fowler, president of REXtac, said, “REXtac is excited to be able to partner with DL Chemical. The joint venture manufacturing capability will provide service, supply, and delivery security to our customer base and free REXtac USA from total dependency on North American propylene prices.”

REXtac manufactures APAO and produces amorphous poly alpha olefins through a proprietary catalyst and liquid pool production process. This method provides the broad range of performance properties in a polymer. REXtac’s research and development lab has created a line of APAOs to satisfy most challenging adhesive applications.

DL Chemical and REXtac look forward to the partnership in hot-melt adhesive industry. The groundbreaking is scheduled to begin this year and will commercially operate in 2023.

Source: REXtac
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