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SONGWON sees brighter year for stabilizers
Source：Plastics News Asia
Date Published：1/12/2018 03:01:31 PM
Mr. Maurizio Butti, CEO of SONGWON Industrial Group, talks about the Group's key focus in 2018
SONGWON’s target has always been to be a key player in all of its businesses. We have established ourselves as one of the key global players in the Polymer Stabilizers business (AOX and UVs for plastics), while we have regional leadership positions (mainly in Korea and North East Asia) in some of our other businesses (Tin Intermediates, PVC Stabilizers and Polyurethanes). So, our emphasis will still be to grow and consolidate our global position in Polymer Stabilizers, while we are focusing on expanding our position on the other regional businesses mentioned above.
In the meantime, a number of our businesses, which we have started to develop in 2017, will become a key focus during 2018. These are businesses (electronic chemicals, coating stabilizers, fuel and lubes additives, functional monomers, etc.), where we think we have the necessary strengths and competitive advantages and see a great potential for growing sales and results, with the aim to support double digit growth for the foreseeable future and develop a balanced business portfolio. In addition, for some of these businesses the geographical location of our manufacturing facilities (Asia) is a key competitive advantage because it is where the market is or it is growing. Our strategy is now to move from being a well-known key global player in the AOX/UVs stabilizers market, with regional activities in other businesses, to a truly specialty chemical company.
Mr. Maurizio Butti, CEO, SONGWON Industrial Group
In general, we expect growth in demand because of the overall economic growth foreseen for 2018. But besides this, each of the businesses mentioned above have their own dynamics and specific trends. For instance, we expect plastic demand to continue to grow above GDP, driving the demand for Polymer Stabilizers. The growth of plastic demand is clearly related to the megatrends we are experiencing during these years: population growth, economic growth in developing countries, reduction of emissions (lightweight cars) etc. Demand for PVC stabilizers is also driven in certain region by the ongoing substitution of old kind of stabilizers (lead-based in particular) which have been phased out for environmental/toxicity reasons in other areas Polyurethanes will grow because of the development of product for higher end applications. Lube antioxidants have a very high prospect for growth due to the new standards for lubricating engine oils, growth which should be particularly significant in Asia. In addition, electronic chemicals demand is driven by the constant innovation in the display and semiconductor businesses
SONGWON is planning a double-digit growth in 2018, partly due to the traditional businesses, and partly due to the new businesses. In 2017, we have been expanding our production footprint to be able to achieve this goal via a new world scale aminic AOX plant for Lube application that started up in the third quarter in Ulsan site, Korea. Another production line for Polyurethanes has been started up also in the third quarter in Suwon site, Korea. The new line dedicated to electronic chemicals is also in operation in Maeam site, Korea. In Panoli site, India, we have expanded the plant capacity for electronic chemicals, started up the production of a new niche AOX for plastics. In addition, we have invested into a new pilot plant which will support a faster scale up of new technologies and products. The start up of another production line for a niche AOX for plastics, a new aminic AOX line and the production line for functional monomers are scheduled to take place in the Ulsan site, Korea. In 2018 we will continue to expand our plastic AOX capacities through debottlenecking and productivity improvements.
We are looking at innovation with renewed focus and commitment. Back in March 2017 we have inaugurated the new Technology Innovation Center in Maeam site (Korea). Keeping an eye on the future, the facility has been already designed with future expansion in mind and is constructed to allow the company to add two more floors later as required. The new facility hosts both R&D, Global Application Community and Technical Service, and fully supports the complete development of new products from the design phase to final customer applications.
SONGWON Industrial Group
Tel: +41 52 635 0000