SEOUL -- REXtac, a polymer producer based in Texas, has agreed with South Korea's DL Chemical to set up a hot melt glue joint venture at an industrial complex in the southern industrial port city of Yeosu. Production is to begin in the first half of 2023.
Hot melt glue is an adhesive that can be melted by heat and is widely used to assemble sanitary products such as diapers and sanitary pads and various industrial products such as automobiles. REXtac and DL Chemical would invest a total of 150 billion won ($134 million) to build a plant capable of producing 40,000 tons of amorphous poly alpha olefin (APAO) and glue annually.
APAO, a commodity chemical used in multiple applications, is drawing attention as an eco-friendly adhesive material that is harmless to humans. DL Chemical controls 74 percent of the joint venture. "Adhesives are a high-growth, high-yield material business with high entry barriers. This investment is based on DL's business strategy of fostering its high-tech chemical materials business," said DL Chemical vice chairman Kim Sang-woo.
DL Chemical, which was spun off from what used to be Daelim Industrial, has strengthened its specialty product lineup. In a $530 million deal in 2020, the petrochemical company acquired Cariflex, a leading manufacturer of synthetic rubber materials for medical purposes, from its American parent company, Kraton.
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