Home / News / US’ REXtac, South Korea’s DL Chemical setting up APAO plant

US' REXtac, South Korea's DL Chemical setting up APAO plant

Jun '21
Pic: Rextac/Facebook
Pic: Rextac/Facebook
Texas-based REXtac, and DL Chemical of Seoul are together setting up an Amorphous Poly Alpha Olefin manufacturing plant in South Korea, with an investment of $134 million. The APAO hot melt polymer and adhesive is widely used in a variety of areas, including hygiene products, HVAC filters, automotive interiors, and other industrial applications.

The groundbreaking is scheduled to begin this year and will commercially operate in 2023. The environmentally focused APAO plant will have an annual capacity of 88,000,000 pounds per year.

The JV will leverage DL Chemical’s global network to actively expand into the hot melt adhesive market, valued close to $10.4 billion. This partnership will combine DL Chemical’s research and development capabilities with REXtac’s state-of-the-art APAO manufacturing technology and R and D.

Nick Fowler, president of REXtac, said, “REXtac is excited to be able to partner with a world class, experienced, petrochemical company, DL Chemical. The joint venture manufacturing capability will provide global service, supply, and delivery security to our ever expanding customer base and free REXtac USA from total dependency on North American propylene prices.”

DL Chemical is a specialised petrochemical company headquartered in Seoul, South Korea. It entered the petrochemical industry in 1979 and has since helped shape the Korean petrochemical industry through development, continuous investment, and collaboration with global companies. DL Chemical was the first to develop and commercialise high quality metallocene polyethylene in Korea and manufacture polybutene and synthetic oil.

Headquartered and operated in Odessa, Texas, REXtac was founded in 2009 by an acquisition from Flint Hills Resources and Huntsman Chemical. REXtac is a leader in manufacturing APAO and produces amorphous poly alpha olefins through a proprietary catalyst and liquid pool production process. This method provides the broadest range of performance properties in a polymer. Through innovation and creativity, REXtac’s research and development lab has created a unique line of APAOs to satisfy some of the most challenging adhesive applications.

Fibre2Fashion News Desk (SV)

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