KH NeoChem, a Japanese producer of specialty chemicals such as fatty acids, esters and feedstocks for niche lubricants, will be listed tomorrow on the Tokyo Stock Exchange.
The Tokyo-based firm will increase the development of new products related to refrigeration lubricants and aim to increase revenues from the lubricant segment, the company reported to the TSE. The company specializes in oxo reactions that produce alcohols and esters along with derivatives such as 2-ethylhexanoic acid and isononanoic acid, which it sells as raw materials for lubricants.
KH NeoChem said that there is growth in demand for special lubricants for refrigeration compressors that can be used as environment-friendly alternates to chlorofluorocarbon (CFC) refrigerants. For the first half of this year, demand for functional materials grew mainly in Asia and the United States and due to an increase in sales volume, revenue increased compared to the same period last year, with sales reaching 14.96 billion.
The company plans to increase its production capacity for these functional chemicals and expand its global markets. In the future, we will develop new products for the lubricant segment, it added. The company will invest 275 million (U.S. $2.7 million) in establishing new facilities at its industrial alcohols and 2-ethylhexanoic acid plant in Yokkaichi, Mie Prefecture, by the end of this year.
The company claims to be Japans sole manufacturer of isononanoic acid, a raw material for lubricants used in non-CFC air conditioners, supplying to domestic and international markets. KH NeoChem makes isononanoic acid at its 215,000-sqaure meter plant in Keiyo Rinkai, Chiba Prefecture.
KH Neochem also said its the only manufacturer in Japan with the high-pressure oxo equipment able to create special alcohols and synthetic fatty acids such as isononyl alcohol and isononanoic acid – which are both used in the manufacturing of lubricants. The company makes an array of other specialty chemicals, including brake fluids, solvents, paints, plasticizers, comestics and raw materials for electronic materials including semiconductors, liquid crystal displays and computers.
The firm has affiliates in several locations in Japan as well as in the U.S., Singapore and China.