The 100,000 tons per year neopentyl glycol project for powder coating additives at Luxi Chemical in Liaocheng has been approved for consideration

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Application for 100,000 tons/year powder coating additive project accepted! 2025-08-20 On August 18, 2025, the Liaocheng Ecology and Environment Bureau issued a public announcement regarding the acceptance of the green and low-carbon high-end chemicals project of Luxi Chemical Group Co., Ltd. (a project for producing 100,000 tons per year of powder coating additives). Date for soliciting opinions: August 18, 2025 – September 1, 2025 (10 working days). According to the disclosures, the powder coating additive to be produced in this project consists of neopentyl glycol, also known as dimethylpropaneglycol, which is an important organic intermediate. Saturated polyester resins derived from neopentyl glycol are used as raw materials for the production of powder coatings and high-solid-content coatings. Their unique molecular structure endows them with excellent properties such as flowability, flexibility, chemical stability, weather resistance, chlorine resistance, thermal stability, and resistance to ultraviolet radiation. As environmental awareness grows, eco-friendly coatings such as powder coatings and high-solid-content coatings are developing rapidly, thereby expanding the market for neopentyl glycol. The raw materials for the production of neopentyl glycol are isobutyraldehyde (dimethylacetaldehyde), 37% formaldehyde, and hydrogen; the condensation catalyst is trimethylamine. Isobutyraldehyde can be produced by Liaocheng Luxi Polyol New Materials Technology Co., Ltd. itself. The polyol plant of the company has an isobutyraldehyde production capacity of 99,400 tons per year, of which 30,000 tons are used by the first-phase powder coating additive plant. Given that the market price of isobutyraldehyde fluctuates significantly due to influences from downstream markets, while the prospects for pentaerythritol are favorable, in order to utilize all the remaining isobutyraldehyde products and achieve greater economic benefits, seize the favorable opportunities presented by the development of pentaerythritol, expand the market scale of its products, and enhance the company’s overall competitiveness, the company plans to build a project for producing 100,000 tons per year of powder coating additives. This will involve constructing a facility capable of producing 100,000 tons of pentaerythritol, with some of the supporting infrastructure being newly built and some made use of existing facilities within the industrial park. The construction of this project offers numerous advantages: ① The raw material supply is reliable, convenient, and cost-effective; dimethyl acetaldehyde and trimethylamine are both products manufactured within the park, while formaldehyde is supplied by the formaldehyde production facility built as part of Phase I, and it is produced through the oxidation of methanol, which is also a product available within the park. The raw materials are transported via pipelines by the relevant facilities in the park, reducing transportation steps. ②The project’s utility services rely on steam, deionized water, instrument air, etc. available in the park; these services are inexpensive, which helps reduce production costs and thereby enhances the competitiveness of the enterprise. Upon completion of this project, it will supply the market with high-quality neopentyl glycol products, bringing significant social and economic benefits ； It can also extend the industrial chain within the park, in line with the group’s development strategy of extending, supplementing, and strengthening such chains. Therefore, the construction of this project is necessary. The advancement of this project not only marks a new strategic step forward for Luxi Chemical in the chemical industry, but it is also expected to provide strong impetus for the expansion of the environmentally friendly coatings market as well as for the green transformation of the regional economy.