Hanwha plans to invest in new 180,000 tons/year DNT production capacity

According to news on April 1, Hanwha Group Chairman Kim Seung-yeon returned to management after a lapse of 7 years, and Hanwha’s core subsidiaries are vigorously developing new businesses. Following trillions of investments in the aerospace and aviation sectors, it will also promote its own production of dinitrotoluene (DNT).

On March 31, Hanwha Solutions and Hanwha Co., Ltd. plan to jointly invest 350 billion won to build nitric acid and nitric acid derivatives (DNT) production facilities in the Yeosu Industrial Park. DNT is produced from nitric acid and toluene, and is an important raw material for the production of toluene diisocyanate (TDI) such as artificial leather.

Hanwha Solutions plans to invest 160 billion won, and Hanwha Co., Ltd. plans to invest 190 billion won to build nitric acid and nitrate derivatives (DNT) facilities. Hanwha Solutions has so far been purchasing DNT from Hu-Chems. After the plant is completed, it will be able to produce 100% DNT on its own.

The two companies plan to use half of the 132,000 m2 polysilicon area of the Hanwha Solutions Yeosu Industrial Park, or 66,000 m2, to build a DNT production facility with an annual production capacity of 180,000 tons. Its goal is to achieve commercial production in January 2024. An official from Hanwha Solutions explained: "Through this internal DNT production, we will establish a vertically integrated line for the production of caustic soda, chlorine, synthetic gas, DNT and TDI."

Hanwha Solutions predicts that if DNT is produced in-house, operating profit margins will increase by about 10% due to cost improvements. Through this project, Hanwha will expand its nitric acid business and produce 400,000 tons of nitric acid per year.