Nouryon (formerly, AkzoNobel Specialty Chemicals) to double production capacity of organic peroxides at its Los Reyes site, Mexico to meet increased customer demand for polyvinyl chloride (PVC) and polyolefin in North America. The expansion is planned to be completed by the first half of 2020.
Organic peroxides are commonly used in specialty chemicals. They have witnessed significant growth over the past decade and are being used as accelerators, initiators, cross-linking agents, hardeners, activators, and curing & vulcanization agents in polymer chemistry. Organic peroxides are also used for their bleaching and disinfecting properties. They are mainly used in the polymer industry, for the polymerization of low-density polyethylene (LDPE) and polyvinylchloride (PVC). Polymers are used extensively in various industries such as automotive, construction, electrical & electronics, and composites.
Lakshmi Narayanan - Associate Vice President : Chemicals & Materials Research, at MarketsandMarkets™, shares his Point of View as mentioned below:
Organic Peroxides Market
The global organic peroxides market size was USD 868 million in 2016 and is projected to reach USD 1,069.1 million by 2022, registering a CAGR of 3.4% between 2017 and 2022. The growth in the organic peroxides market is boosted by the increased consumption of chemicals and plastics. Furthermore, increased manufacturing of synthetic rubbers and elastomers are driving the market. North America is the largest market for organic peroxides, in terms of value, and offers significant potential opportunities. The organic peroxide market in North America accounted for a major share of 59.2%, in terms of value, in 2016. The growth is driven by the growing chemical and plastic industries in the region.
CHEMICALS & PLASTICS APPLICATION IS EXPECTED TO DRIVE THE ORGANIC PEROXIDE MARKET
Source: MarketsandMarkets™ Analysis
Note: Others include explosives, as maturing agents
e – estimated; p - projected
Impact on market
Organic peroxides are commonly used in the chemical industry as intermediates or as catalysts in numerous reactions. They are effective initiators, accelerators, and curing agents, and are used for free radical polymerization initiator in reactions and for the polymerization of LDPE and PVC. Thus, organic peroxides play a crucial role in plastics applications. North America is a major market for organic peroxides in the chemicals and plastics application segments, mainly because of its technological advances and facilities. Significant investment to boost the production capacity will help Nouryon to strengthen its leadership position in the North American Market.
Impact on top competitors
The organic peroxide market is highly consolidated. Nouryon, Arkema, and United Initiators are some of the leading players in the global organic peroxide market. The expansion will enable Nouryon to address more opportunities in the growing North American polymer market and earn a competitive edge. Post expansion, Nouryon’s market share is expected to increase in North America, as well as, globally. Nouryon is expected to hold the largest market share of 30–35%, ranking first in the global organic peroxide market.
Nouryon is adopting organic and inorganic growth strategies to gain scale and fend off competition. The competitiveness of the organic peroxide market is continuously increasing with the capacity expansion by these companies. Nouryon is aggressively expanding production capacities to maintain its leadership position in the global organic peroxide market. This expansion will help Nouryon further grow its customer base in North America and cater to the customers more effectively.