Joint Venture was the Key Strategy Adopted by the Leading Players to Grow in the Monochloroacetic Acid (MCA) Market Between 2014 and 2017
The MCA market is estimated at USD 762.6 Million in 2017 and is projected to reach USD 908.9 Million by 2022, at a CAGR of 3.6% during the forecast period. Leading market players, such as AkzoNobel (Netherlands), CABB (Germany), and Niacet (US), have adopted several strategies, such as joint venture and acquisition, to efficiently serve customers and increase their market shares.
Joint venture was the key growth strategy adopted by the major players in the MCA market. This strategy accounted for a share of 66.7% of the total growth strategies adopted by the major market players between 2014 and 2017. These players have also adopted acquisition as the second level growth strategy to expand their regional presence. This strategy accounted for a share of 33.3% of the total growth strategies adopted by the players between 2014 and 2017.
AkzoNobel (Netherlands), the largest manufacturer of MCA, adopted joint venture as its primary growth strategy. For instance, in April 2016, AkzoNobel entered into a joint venture with Atul Chemicals (India) to set up an MCA production plant at Atul’s existing business unit in Gujarat, India. The 50-50 joint venture project is expected to start in the first quarter of 2019. From an initial annual capacity of 32,000 tons, the plant has been intended for future expansion of 60,000 tons per year. The joint venture project will utilize chlorine and hydrogen manufactured by Atul and AkzoNobel’s cutting-edge eco-friendly hydrogenation technology to produce MCA. Along with meeting Atul’s MCA requirement, the proposed facility will also serve the MCA market in India.
CABB (Germany), ranked as the second largest manufacturer of MCA, has also adopted joint venture as its key growth strategy to strengthen its foothold in the global market. For instance, in April 2016, CABB entered into a joint venture with Jining Gold Power (China) to produce MCA in China. This joint venture was worth USD 16.6 million. The plant, which utilizes the latest German hydrogenation technology, would initially be producing about 25 kilotons per year of MCA flakes. It will also start the production of MCA in the liquid form at a later date. Currently, half of the global MCA demand is from China, with the demand growing at an above-average rate. Therefore, this local production plant will also leverage benchmarks in quality, safety, and sustainability.
Related Reports:
Monochloroacetic Acid Market by Product Form (Crystalline, Liquid, And Flakes), Application (CMC, Agrochemicals, Surfactants, TGA), and Region (North America, APAC, Europe, Middle East & Africa, and South America) - Global Forecast to 2022
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