AkzoNobel Specialty Chemicals has broken ground for a new organic peroxide production plant at Tianjin, China. The €90-million facility located in the Nangang Industrial Zone is due to be completed in the second quarter of 2020.

The company spun off from Akzo Nobel said the new plant will replace its existing organic peroxides facility at Tianjin and increase capacity by 30-70%, supporting efforts by Chinese authorities to upgrade its industrial chemicals industry.

Organic peroxides are used to produce a wide range of polymers including PVC and thermoset resins. Demand continues to increase in Asia and around the world, Jack Li, regional sales director Polymer Chemistry, said at the groundbreaking ceremony. Li estimated that end-use markets for organic peroxides are growing annually 5-6% in China, outpacing growth elsewhere.

Now owned by private equity investor Carlyle in partnership with GIC, the largest of Singapore’s sovereign wealth funds, the Dutch company said it is focusing on improving sustainability at the new site to meet the Chinese government's stringent requirements. This entails installing innovative technology to minimize wastewater discharges. New equipment will also streamline production processes, helping to reduce water and energy consumption while removing volatile organic compounds.