Chemical company Wacker Chemie AG is set to expand its production plants for polymer binders in South Korea. The company, which is based in Munich, plans to build a new spray dryer for dispersible polymer powders at its Ulsan site, which will boost the total production capacity to 80,000 metric tons per year.
Wacker also plans to build a further reactor for dispersions based on vinyl acetate-ethylene copolymer (VAE) which will more than double the production capacity. Its dispersions will be used in the spray dryer for the production of dispersible polymer powders.
Ulsan’s plant complex, which covers the entire product chain from VAE dispersions to dispersible polymer powders, will be one of the largest of its kind worldwide. Capital expenditures of around EUR60 million are budgeted for the capacity increase and for expanding local infrastructure.
“Our investment in expanding our polymer-binder production facilities in Ulsan is a key step in our global growth strategy,” CEO of Wacker Chemie AG Rudolf Staudigl said.
“The additional capacity will strengthen our market position the world’s leading manufacturer of dispersions and dispersible polymer powders, and will help us meet our Asian customers’ continuously rising demand over the long term,” he added.
Worldwide, megatrends such as urbanization, renovation and energy efficiency are stimulating demand for environmentally compatible dry-mix mortar products. This then spurs demand from Wacker’s customers for high-quality dispersible polymer powders. Wacker therefore sees the current expansion as vital for reliably and enduringly meeting the market growth projected for the region. Alongside the new facilities, the Group is also investing in the expansion and modernization of local infrastructure.
Dal-ho Cho, in charge of the Korean subsidiary Wacker Chemicals Korea, stressed the importance of the expansion program for Asian markets: “The new facilities will not only secure Wacker’s supply chain in South Korea in the years ahead, but will also enable us to supply first-class, locally manufactured products and solutions to our regional customers to meet their specific needs.”
Utilizing the Ulsan site’s existing infrastructure, he added, would produce synergy effects in transportation and logistics.
Wacker has over 60 years’ experience in the development and production of dispersions and dispersible polymer powders and is the global technology and market leader in the field of vinyl-acetate-based copolymers and terpolymers.
The construction of the plants is scheduled to start before the end of the year, construction work is expected to be finished by Q1 2019.