March 1, 2016
Volume 7 Issue 9
Perstorp Considers Penta Plant in India
Perstorp announced recently that it may build a world-scale pentaerythritol factory in India to better position itself to supply the chemical for lubricants, coatings and other markets in Asia.
“The penta business is a cornerstone for Perstorp and an integral part of the strategy to drive growth in the Asia-Pacific region,” President and CEO Jan Secher said in a Feb. 19 statement posted after Perstorp signed a memorandum of understanding at the Make in India trade exhibition in Mumbai.
“It requires presence and determination in order to succeed," he said. "An investment in India would further build upon and strengthen our number one position in the global market. Today’s signing of a MoU demonstrates our intention to take the desired steps in the region.”
Perstorp, which is based in Malmo, Sweden, signed the memorandum with Maharashtra Industrial Development Corp. as a nonbinding commitment to try to make arrangements necessary for a feasible project. Perstorp said it is too early to discuss details but that it intends to build a facility on the same scale as its three existing penta production sites in Sweden, Germany and the United States.
Ulrika Andersson, vice president for the company’s penta business unit, declined to discuss the timeline for a final investment decision, which she said is “still pending some further facts.”
Pentaerythritol, which is commonly known as penta, is a family of crystalline polyhydric alcohols, some of which are used as building blocks in the manufacture of synthetic ester base stocks for lubricants. Typical lube applications include aviation lubricants, refrigeration lubes and other synthetics that need wide temperature properties. Other applications include coatings, polyurethanes and explosives.
Perstorp is new to the penta market, having acquired its penta business from Japan’s Koei Chemical Co. in July. In signing the MoU, Perstorp specifically cited growth in India’s coatings market as a motivating factor in the push to build a penta plant in Asia, but Andersson added that “continued growth and geographical expansion within synthetic lubricants is a key driver for the investment in monopenta, as well as di-penta.”