Chemtura Corp. said it will expand capacity for antioxidant capacity in Taiwan and elsewhere to help meet demand triggered by the push for greater fuel efficiency in automobiles.
The U.S.-based chemical company said it will boost alkylated diphenyl amine capacity at its Kaohsiung, Taiwan, plant by 10 percent by 2015. Over the same time frame it will also expand ADPA plants in Elmira, Ontario, Canada, and Latina, Italy, by 20 percent and 25 percent, respectively.
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As the automotive industry sets more stringent regulations and requirements for fuel economy, there will be an unmet demand for antioxidants in the marketplace by 2017, said Kerim Wewer, head of asset management in Europe, the Middle East and Africa for Chemtura Europes Industrial Performance Products division. We intend to ensure a continuous supply of antioxidants to the industry through these capacity additions along with future expansions.
ADPAs are one of various chemistries that the lubricant industry uses to help slow the process of oxidation, one of the main factors limiting lubricant performance life. According to Chemtura, nearly 75 percent of global lubricant antioxidant output goes to automotive applications.
Governments around the world are raising fuel economy requirements for on-road vehicles. One of the most popular strategies adopted by automakers is to reduce engine sizes, but many are also adding turbo-chargers to provide vehicles with additional power when needed. This increases power density in engines, resulting in higher temperatures that tend to accelerate the oxidation of engine oils.
Analysts predict the industrys demand for antioxidants will grow around 5 percent annually through 2018, Chemtura said.
The requirement for superior oxidative stability in automotive formulations is critical and underpins this strong growth, Chemtura Automotive Market Manager Michele Ottavio said.
Chemtura markets its ADPA antioxidants under the Naugalube brand name.