Foreign Chemical Companies Securing Government Projects with Special Materials

BASF Supplies Eco-Friendly Insulation Material 'Slentex' for Ministry of Environment Pilot Project
Kovestro PC Film Scheduled for Electronic Passport Supply

[Asia Economy Reporter Hwang Yoon-joo] Foreign chemical companies are taking the lead in the government's eco-friendly projects by leveraging specialty materials. There are calls for the domestic chemical industry to enhance competitiveness through research and development (R&D) and mergers and acquisitions (M&A) in the specialty materials sector, moving away from commodity products.

According to the chemical industry on the 10th, BASF will participate in the Ministry of Environment's pilot project for a "delivery system without secondary packaging materials in distribution logistics," which will be implemented from October. This project delivers parcels without packaging materials using a "smart box" made of eco-friendly specialty materials, and BASF will supply its independently developed "Slentex." Slentex, an eco-friendly insulation material, will be applied for the first time worldwide in Korea for cold chain delivery.

Slentex is mainly used in fields where temperature control is critical, such as pharmaceuticals and organ donation. A foreign chemical industry official said, "Although the government project has low profitability, its symbolic value is significant," adding, "It means that the technology has been proven in the fiercely competitive global chemical industry for eco-friendly and new materials development."

Covestro is also expected to supply polycarbonate (PC) used in next-generation electronic passports issued from the end of this year. As the material for resident IDs and next-generation electronic passports changes to PC, Covestro, which has unique technology in this field, is highly likely to sign a business contract with the government.

PC is a material already used in passport production in Europe and other countries due to its high security. Unlike engraving letters on a single film sheet, information is divided and engraved with a laser on each PC film sheet, making counterfeiting difficult. Although there are medium-sized domestic companies capable of producing PC, the government is said to have selected Covestro considering its recognition in the global PC market. Covestro has a history of developing and commercializing PC for the first time in 1953. As demand for secure documents increases, 30 countries worldwide use Covestro PC.

A domestic chemical industry official explained, "Lotte Chemical and SK-affiliated chemical companies are consecutively conducting M&As to rapidly expand their specialty portfolios," adding, "While in-house technology is necessary, M&As will continue in the future to catch up with market trends, including automotive specialty materials and eco-friendly materials."