Polybutene Daelim to Expand Highly Reactive Polybutene Plant
Daelim’s Petrochemical Business Division has disclosed its plan to expand its highly reactive polybutene plant. The company intends to expand the annual output of its existing plant, which is located at Yeosu National Industrial Complex, from 65,000 tons to 100,000 tons by November 2016 by investing KRW 74 billion.
Seoul/Korea – After the expansion, Daelim will be able to produce 185,000 tons of polybutene annually by including the polybutene plant’s annual production output of 85,000 tons of general-purpose polybutene. With such expansion, Daelim expects to position itself as the top polybutene manufacturer in terms of world market share, widening the gap with Germany’s BASF (annual output: 140,000 tons).
Polybutene is mainly used as raw material for lubricant additives and fuel purifiers. Because the highly reactive polybutene can simplify the lubricant manufacturing process, it enhances production efficiency. In addition, eco-friendly products can be produced since polybutene has no chlorine ingredient. With environmental regulations consolidated worldwide, the eco-friendly lubricant additive and fuel purifier markets are expanding. In this regard, the highly reactive polybutene market has been steadily increasing by 4% on the average every year.
Daelim seeks to become the No. 1 company in the polybutene sector through such expansion. More than 90% of Daelim’s polybutene products are exported to global lubricant additive manufacturers including Chevron, Lubrizol, and Infineum. Daelim seeks to prove its technical capabilities by successfully developing polybutene, completing plant construction, and operating and expanding the plant. The company also pursues productivity expansion through cost savings by using raw materials efficiently.