New Advantages of Coating Adhesives - Market Survey of Neopentyl Glycol

Neopentyl glycol is mainly used for the production of saturated polyester resins. Its derivatives are widely used in coatings, automobiles, textiles, pesticides, plastics and petroleum. The saturated neoprene resin produced from neopentyl glycol, its unique neopentyl structure makes the powder coating and high-solid coating prepared with it as raw material have excellent fluidity, flexibility, chemical stability, and weather resistance. Properties, chlorine resistance, thermal stability, and resistance to UV radiation. With the strengthening of people’s awareness of environmental protection, the rapid development of environmental coatings such as powder coatings and high-solid-component coatings has resulted in an ever-growing market for neopentyl glycol. In addition, neopentyl glycol also has applications in unsaturated polyester resins, pharmaceuticals, adhesives and other fields, which have great market potential.

Western developed countries are currently developing new applications for neopentyl glycol. At present, the global neopentyl glycol market is approximately US$5.22 billion, with an annual growth rate of 6%. The world's leading neopentyl glycol producers are BASF, Eastman Chemical, Mitsubishi Gas Chemicals and LG Chemicals. LG Chemicals is expanding its neopentyl glycol capacity. The company invested $17.4 million in the expansion of neopentyl glycol capacity, increased it to 50,000 tons per year, and stepped up efforts to enter the Chinese market, planning to make it neopentyl glycol It accounts for 15% of the world market and 25% of the Chinese market.

China currently has three neopentyl glycol production plants. BASF Jilin Neopentyl Glycol Co., Ltd. currently has a plant capacity of 15,000 tons and is planned to expand to 25,000 tons in 2005. The production process is advanced. The price of the product is higher than that of the other two manufacturers. Flat; Shandong Linyi Yongliu Chemical Co., Ltd. has a total capacity of 20,000 tons; Shandong Dongying Dongchen Group has a production capacity of 07,000 tons.

In 2004, the total production capacity of neopentyl glycol in China was about 40,000 tons, the output was 28,000 tons, the import was about 29,000 tons, and the apparent consumption was 58,000 tons. The production of neopentyl glycol in China is in short supply, and the contradiction between supply and demand is outstanding.

It is predicted that by 2008 China's demand for neopentyl glycol will be approximately 86,400 tons. At that time, although China's production capacity can be increased to 52,000 tons, even if full-load production does not meet market demand, there will still be a market gap of 30,000 to 40,000 tons. Companies that plan to build a neopentyl glycol project should focus on the following three aspects. First, the supply of raw materials, isobutyraldehyde, must be guaranteed. Isobutyraldehyde is an intermediate for the synthesis of octanol from oxo. To produce neopentyl glycol, the raw material supply of isobutyraldehyde must be implemented. The second is to be close to the market. China's neopentyl glycol consumer market is mainly concentrated in the Pearl River Delta and the Yangtze River Delta. The new neopentyl glycol project should be close to the market. The third is the pursuit of technological advancement. The advanced technology such as the condensation hydrogenation method of BASF-Gelvin neopentyl glycol should be used. The sodium formate process is relatively backward, and the product quality, economic indicators, and environmental protection requirements cannot be compared with the condensation hydrogenation process.


Source: Chemical Information