TAGS: Acrylic Adhesives
SK Global Chemical (SKGC) signs a deal with Zhejiang Satellite to build a 40,000 ton/year ethylene (C2) acrylic acid (EAA) plant at Lianyungang in eastern China.
Under a memorandum of understanding agreement (MoU) the two firms will establish a new joint venture company for the won (W) 200bn ($176m) project for the production and sales of EAA.
Capturing High-value-added Packaging Market
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SK Global Chemical plans to make its first EAA plant in China a bridgehead to preoccupying the eco-friendly, high value-added packaging markets in Asia, and develop it into a hub for eco-friendly chemical materials," the company said.
EAA is widely used as an adhesive for packaging materials such as aluminum foil. SKGC has two existing EAA plants in the west - one in Texas in the US, and the other in Tarragona, Spain.
Global demand for EAA is expected to increase by about 10,000 tons each year, driven by multi-layer packaging and aseptic packaging, which take about 75% of the entire EAA market, according to SKGC. China's Zhejiang Satellite produces and sells various acrylic acid applied products such as super absorbent polymer (SAP), and polypropylene (PP).
Zhejiang Satellite is expected to start-up its ethane cracker in Lianyungang in March-April. The 1.25m ton/year cracker is the first in northeast Asia that will use ethane as sole feedstock for production.
Source: ICIS