Daelim seeks to become No. 1 in highly reactive polybutene market
Daelim’s Petrochemical Business Division announced on 9 February that it plans to expand its highly reactive polybutene plant at Yeosu Industrial Complex in South Korea. The plant currently produces 65,000 tonnes per year of high-reactive polybutene, and Daelim plans to expand it to 100,000 tonnes per year by November 2016. Through this expansion, which is estimated to cost KRW74 billion (USD67.5 million), Daelim seeks to become No. 1 in the global polybutene sector in terms of market share.
Daelim could be producing 185,000 tonnes of polybutene per year after the expansion, surpassing Germany’s BASF, which currently produces 140,000 tonnes per year.
Polybutene is used as a raw material for lubricant additives and fuel purifiers. In its highly reactive form, it also simplifies the lubricant manufacturing process. Additionally, because it contains no chlorine, it can be used to make environmentally friendly products, which are in increasing demand. In fact, the market for highly reactive polybutene has been increasing by an average of 4% per year.
Daelim is a Korean company with Engineering & Construction and Petrochemical businesses. The petrochemical business has been producing polybutene since 1993 and was one of the first to make highly reactive polybutene. It exports more than 90% of its polybutene products to global lubricant additive manufacturers.