The project was initially announced in November 2019, with expectations to start production in the first quarter of 2022. Progress was delayed by the COVID-19 pandemic.

“This is the largest investment in Asia so far, in Perstorp’s history,” Perstorp Executive Vice President for Commercial and Innovation Gorm Jensen said in a Feb. 21 news release. “This plant will increase the availability and reliability of products for current, as well as new customers, reducing lead times about 50% for Asian customers.”

Jensen noted the plant is strategically located close to ports, rails and roadways. “This will help to ensure that Perstorp can supply products effectively throughout India and across all of Asia,” he added. “At the same time, the plant is well positioned to also export products globally.”

Penta has a wide range of application areas, serving as an essential building block ingredient in synthetic lubricants, antioxidants, paintings, coatings, inks and adhesives. The product slate at the new plant includes Perstorp’s renewable-based Voxtar, penta mono and calcium formate. The company said the plant will use renewable raw materials and a hybrid source of electricity.

The new facility represents a significant increase in Perstorp’s global penta production capacity, adding to facilities in Sweden, Germany and the United States. The Sayakha plant can produce up to 40,000 metric tons per year of pentaerythritol and 26,000 t/y of calcium formate.

The site covers nearly 115,000 square meters – 1.2 million square feet – and will employ about 120 people.

Perstorp was new to the penta market in 2015, acquiring its penta business from Japan’s Koei Chemical Co. in July 2015.

Malaysia’s Petronas Chemicals Group Berhad acquired Perstorp Holding AB in 2022.