The company will capitalise on the enormous demand for the chemical in China.
Yip’s Chemical Holdings Limited (“Yip’s Chemical”), the world’s largest manufacturer of acetate solvents and one of China’s largest manufacturers of petrochemical products, plans to invest RMB300 million to build a butyl acrylate production plant to expand its solvent business product portfolios.
Butyl acrylate is widely used in water-based coatings and serves as a major ingredient of emulsion, adhesives and acrylic resin. The market demand is approximately 1.5 million metric tons per year in China, with an annual growth rate of more than 10% in recent years. To catch up with the robust demand, Yip’s Chemical has planned to invest RMB300 million to build production facilities in Jiangmen, Guangdong. The new production facilities are expected to have an annual capacity of 80,000 metric tons, according to a Yip's Chemical report.
Mr. Stephen Yip, Deputy Chairman of Yip’s Chemical, said, “The butyl acrylate market is enormous in China, with Guangdong province accounting for 30% of the demand despite the lack of any production facilities. Yip’s Chemical’s new plant will thus probably become Guangdong province’s first extensive production base for butyl acrylate. Based on butyl acrylate’s current selling price of around RMB20,000 per metric ton, the capacity is able to support an annual turnover of RMB1.6 upon full production.”
“During our nearly 20-year history of producing acetate solvents, Yip’s Chemical has established solid partnerships in both raw materials procurement and product sales. Such stable relationships will be helpful for both controlling procurement costs and developing sales channels for our butyl acrylate business. Moreover, the cost-effectiveness of the project can be guaranteed as we can fully utilize our existing logistic and facilities at the solvent plant in Jiangmen”, Mr. Yip said.
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