MOSCOW (MRC) -- Hanwha Chemical has launched a pilot production of superabsorbent polymers, a material commonly used for baby diapers, according to GV with reference to a news provider.
There are speculations in the market that Hanwha Chemical has currently carried out trial production of 1,600 tons of SAP using raw materials from China in its factory in Yeosu, South Jeolla Province.
The news outlet reported that Hanwha Chemical is looking into the SAP industry, but is hesitant on mass-production due to the difficulty of obtaining acrylic acid, its base material.
To obtain acrylic acid, Hanwha must either purchase them from LG Chem, the only company in Korea producing SAP and acrylic acid, or import from China or Japan.
Hanwha is reluctant to buy from a rival company, but is also wary of the quality of Chinese-manufactured acrylic acid, as well as fearing potential customer avoidance, according to speculations.
The global market size for acrylic acid was 4.9 million tons, and SAP was 2.3 million tons in 2014. The industries are expected to grow 5 percent and 6.5 percent, respectively, by 2020.
As MRC wrote before, in March 2015, South Korea's Fair Trade Commission (KFTC) gave conditional approval to Hanwha's proposed acquisition of Samsung General Chemicals. The regulatory authority identified that the combined entity could dominate the domestic ethylene vinyl acetate (EVA) market, which could result in higher prices. However, markets of the other three chemical products including low-density polyethylene, linear low-density polyethylene and high-density polyethylene will not be significantly affected by the transaction,
Hanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc., the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial services.
MRC