Hanwha plans to expand TDI production capacity and launch XDI next year

Hanwha Solutions, the chemical production arm of the Korean conglomerate Hanwha Group, is expanding its specialty chemical materials business, expanding investment in production facilities and conducting vertical integration to improve market competitiveness.

According to industry insiders on May 9, Hanwha Solutions is currently conducting research and development with related companies to realize commercialization after starting to produce specialty isocyanate (XDI) materials.

The company expects to release its own XDI next year after receiving orders this year.

XDI is a special material used for optical lenses, adhesives, ink adhesives and coatings. It is mainly provided by Japan's Mitsui Chemicals, with an annual production capacity of 5,000 tons. As of now, the value of one ton of XDI is tens of thousands of dollars.

The global optical lens market is estimated to grow from US$1.15 billion in 2019 to US$1.5 billion in 2025.

Toluene diisocyanate (TDI) is another special material, and Hanwha Solutions is trying to expand its production capacity in response to market competition.

TDI is the raw material of PU resin and adhesive. Flexible foam is used in shoes, furniture, auto parts, bedding and toys, while semi-rigid foam is used in automotive interior materials.

In South Korea, only BASF Korea, Hanwha Solutions, and OCI are able to produce TDI, and the price has been rising since the winter storm in Texas in the United States in January caused plant shutdowns.

Hanwha Solutions announced its 160 billion won (143.5 million U.S. dollars) investment plan in March to build a factory that produces 180,000 tons of DNT per year, a material of TDI. The nitrate used in the production of DNT will be provided by Hanwha. Hanwha Solutions has a TDI production capacity of 150,000 tons/year.