PHENOLIC RESINS MARKET ANALYSIS

Key Developments

• That strategic acquisition by DIC Corporation of Guangdong TOD New Material Co., Ltd. in July 2022 is a significant move to bolster its phenolic resins capacity in the region. This acquisition is poised to enable DIC Corporation to operate at nearly full production capacity in Asia, positioning them to meet the increasing demand for phenolic resins effectively. By expanding its capabilities through this acquisition, DIC Corporation is not only enhancing its production capacity but also strengthening its market position in the industry. This strategic decision aligns with their goal of meeting market demands and solidifying their presence in the competitive landscape of coating resins.
• The acquisition of SI Group's industrial resins business by ASK Chemicals Group in November 2022 marks a significant milestone for the company. This strategic purchase encompasses resin manufacturing facilities in key regions like Brazil, India, and South Africa, along with licensed technology and tolling agreements. By integrating these assets into its portfolio, ASK Chemicals is not only enhancing its presence in the foundry market but also making a notable entry into the phenolic industrial resin sector. This move underscores ASK Chemicals' commitment to expanding its capabilities, diversifying its product offerings, and solidifying its position as a key player in the industry.
• The development of a solid novolac phenolic resin by Sumitomo Bakelite in September 2020 using nonedible lignin as raw material represents a significant advancement in resin technology. This innovative resin not only showcases the company's commitment to sustainability by utilizing nonedible lignin but also opens up new possibilities for commercial production. With its wide utility in auto applications, especially in electric vehicles, this novel resin is poised to play a crucial role in enhancing the performance and sustainability of automotive components.
• The acquisition of Phenolic Specialty Resin, Hexamine, and the European-based Forest Products Resins businesses from Hexion, Inc. by Black Diamond and Investindustrial in September 2020 marks a strategic move in the industry. Black Diamond, known for manufacturing equipment for climbing, skiing, and mountain sports, along with Investindustrial, a global private equity firm specializing in mid-market company buyouts, have expanded their portfolio by acquiring these businesses.