Perstorp boosted by switch to specialized plasticizers

LONDON (ICIS)–In 2012 the EU began a process on phasing out plasticizer dioctyl phthalate (DOP) amid fears about reproductive toxicity. This left a few European producers with a somewhat tough business decision to make – step out of the plasticizers market or come back later with an alternative. Perstorp opted for the latter.

In May 2015, the Swedish producer officially opened a new oxo-alcohols plant to boost production of its general purpose polyvinyl chloride (PVC) plasticizers.

The new plant in Stenungsund, Sweden, has 150,000 tonnes/year of oxo-alcohols capacity which will in turn boost Perstorp’s plasticizer dipropyl heptyl phthalate (DPHP) production – a much more narrow range, specialized plasticizer.

According to Jan Secher, president and CEO of Perstorp, the producer is in a strong position with this plasticizer. 

“We all had to make choices a few years ago. What I think is important to get across as a message is that we have been in the plasticizers market for a long time,” said Secher. “Now we are getting more specialized plasticizers.”

Perstorp began producing DPHP two and a half years ago, just before it stopped its DOP production.

Before the new plant opening, the producer had a nameplate capacity of 60,000 tonnes/year.

Separately, Perstorp has had the capacity to produce 90,000 tonnes/year of oxo-alcohol n-butanol (NBA), and 120,000 tonnes/year of 2-ethylhexanol (2-EH).

The new plant will be producing 2-propyl heptanol (2-PH) and n-valeric acid. Those products will be then used to produce DPHP, as well as Pevalen, a plasticizer, which Perstorp will be the first to produce. The company refused to give details on how much DPHP will be produced in comparison to Pevalen.

DPHP is used to enhance the durability of PVC applications such as cables, wired and roofing membranes.

Pevalen is a non-phthalate plasticizer, partially derived from renewable resources. It will go into closer-to-consumer PVC applications such as flooring and coated fabrics. 

NEW STRATEGY

Secher explained that the new plant will impact both Perstorp’s oxo-alcohols and plasticizers market role. The company used to source butene, but now will have fully upstream integrated plasticizers production.

The producer is now also looking to enter the 2-PH merchant market, moving from the buy to the sell side of that market.

Perstorp has identified producers of surfactants and hard-surface cleaners as its target group. Producers currently largely rely on natural and synthetic C9-C12 linear and branched alcohols, but these feedstocks have recently been subject to swings in availability and price volatility, explained Secher.

Separately, increased plasticizers production, of course, will mean a stronger presence and increased market share. 

The plasticizers market has been well supplied in recent months with producers speaking of a fair amount of local and import competition.

Secher admits there are challenges but believes Perstorp is in a good position. “We have been in the market for many years – we have seen it go up and down, we have seen it tight and long. We are now seeing quite good demand. We sold 130,000 tonnes last year – that is above satisfactory,” he said.

Pevalen, on the other hand, is a brand new product which will be derived from aliphatic raw materials. Perstorp will use butene as a key feedstock for the production of both of the plasticizers.

The process for obtaining food contact approval for Pevalen is currently underway and Perstorp expects this to be concluded in 2016.

Secher said the new product has been well accepted by current customers so far and has recently started selling. It is also the first time Perstorp will be producing valeric acid – raw material that will be used to produce Pevalen.

Valeric acid goes in to the production of lubricants, adhesives and surfactants, and is also used in manufacturing of pharmaceuticals.

In terms of Perstorp’s client base, Secher pointed to the highly regional nature of oxo-alcohols.

“Our main focus will remain Europe – it will be the largest part of our oxo-alcohols market, but not necessarily the only one,” he said.

“We are happy to explore opportunities in Asia and America, especially on valeric acid [where] we have seen interest.”

All in all, Secher expected by the end of the year Perstorp will be back to the capacity it had before leaving the DOP market, with new products adapted to the current market situation and regulations.

Interview article by Yana Palagacheva