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Market players are concentrating on increasing their expansions and partnerships, expecting a surge in phenolic resin demand from different industry
The global phenolic resin industry is a rapidly evolving market. Currently, the global phenolic resin market is dominated by number of major players such as Momentive Specialty Chemicals Inc. (U.S.), SI Group (U.S.), BASF SE (Germany), Sumitomo Bakelite Co., Ltd (Japan), and so on. Most of these companies are leaders in the production of phenolic resin of grades and applications. These companies are focused on investment to establish new production facilities and capacity expansion of phenolic resin to achieve economies of scale, product innovation, and expansion in order to capture and improve the market share.
Market players are concentrating on increasing their expansions and partnerships, expecting a surge in phenolic resin demand from different industry; especially, from Asia-Pacific, Central and Eastern Europe, Middle East, Africa, and Latin America. The companies are focusing their investments to set up new facilities mainly in emerging regions and increasing global presence to address the growing demand in emerging markets.
In the recent past, expansions and partnerships have dominated the strategies adopted by phenolic resin players globally. The major market players have invested large amounts in emerging countries for entering and enhancing their market position through capacity expansion and partnerships with other companies. For instance, SI Group Inc. (U.S.) invested $30 million to build an additional phenolic resin manufacturing site in the Nanjing Chemical Industry Park, China.
Further, the leading market players entered into the joint venture with other players to meet their customers’ needs. Momentive Specialty Chemicals Inc. (U.S.) entered into a joint venture with Kanoria Chemicals & Industries Limited (India) to construct a new phenolic specialty resins plant in India. Kanoria Chemicals will be transferring its existing manufacturing facility in Visakhapatnam to the proposed venture, while Momentive Specialty Chemicals will provide technology supporting Momentive Chemicals specialty phenolic resins, formaldehyde and hexamine businesses, as well as its current business in India to this partnership.
The market leaders have adopted different strategies for the developed and developing countries. In developed countries, the demand is expected to slow as compared to the developing countries. The strategy of the market players is focused on developing technology, expanding production capacities, and investing in emerging geographies.
Phenolic Resin Market by Type (Resol and Novolac) and by Application (Wood Adhesive, Molding, Laminates, Insulation, and Others) – Global Trends & Forecast to 2019
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