Expansion of Organic Peroxide Facilities at Yeosu Plant with 13 Billion KRW Investment
Annual Production Capacity Increased by Over 4000 Tons and Productivity Improved by 36%
Chemical materials specialist Dong Sung Chemical is expanding its production capacity of organic peroxides and actively growing its fine chemicals business.
On the 23rd, Dong Sung Chemical announced that it will invest 13 billion KRW by October next year to expand its organic peroxide facilities on the Yeosu plant site. Once the expansion is completed, the annual production capacity of organic peroxides is expected to increase by more than 4,000 tons compared to the current level. Productivity is also expected to improve by 36% through manufacturing process optimization.
Organic peroxides are key materials used as polymer initiators for LDPE, PVC, and as crosslinking agents for EVA sheets. Demand has been steadily increasing as the polymer market expands.
Based on this expansion, Dong Sung Chemical aims to actively respond to the demand for organic peroxides and increase its overseas market share by five times compared to the current level.
Additionally, the company plans to secure new markets by developing powder-type peroxides, which currently rely on imports, and peroxides produced through acid-based processes.
Production of TBHP (t-Butyl hydroperoxide), a raw material for manufacturing organic peroxides, will also be increased to actively target the non-captive market (external market).
Recently, Dong Sung Chemical dismantled 70% of the petrochemical facilities at its Yeosu plant. Instead of the petrochemical sector, which has high carbon emissions and low profitability, the company plans to invest in the high-growth fine chemicals sector to establish a sustainable business system.
Market research firm Global Info Research forecasted that the global polymer market will grow at an average annual rate of 3.8% until 2028. The International Energy Agency predicted that the EVA market will grow at an average annual rate of 9.8% until 2028 due to increased demand for solar power.
Lee Man-woo, CEO of Dong Sung Chemical, said, "We are accelerating the reduction of our existing petrochemical business and improving our business structure for future growth. Based on decades of accumulated technology since entering the fine chemicals business in 1990, we will develop the fine chemicals business into an eco-friendly, high value-added sector."
Through its fine chemicals business, Dong Sung Chemical succeeded in the commercial production of DCP (Dicumyl Peroxide) and CHP (Cumyl Hydroperoxide) for the first time in Korea in 2017, contributing to the stable supply of crosslinking agents and foaming agents for wire coatings. Last year, the company localized TBHP, which had been entirely dependent on imports, establishing a stable supply chain.
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