Plastics additives makers Clariant International AG and Songwon Industrial Co. Ltd. are ending their partnership in the antioxidants market, with each company deciding to make separate investments in Asian production.
Songwon said Sept. 22 that it will make phenolic and phosphite antioxidants at a new plant near its headquarters in Ulsan, South Korea, starting next year, and said it immediately will start selling other products, including light stabilizers and absorbers, directly into the global market.
Songwon Chairman and Chief Executive Officer Kyung-Jae Park suggested his company no longer sees a need to partner with Clariant.
``We have decided it is vital and strategically necessary to be present directly in the global markets and to modify our business models accordingly,'' he said. ``In spite of a long and successful relationship with Clariant, the two companies have agreed not to renew the existing distributorship agreement after the natural expiration date.''
Clariant, based in Muttenz, Switzerland, said it will distribute antioxidants made by Songwon until Jan. 31, 2008.
Songwon is spending US$120 million on its new plant, which will have annual capacity of 121 million pounds, a 60 percent increase over current capacity.