Wednesday, March 12, 2014

Liming Research Institute with Daesung to jointly develop fluorine electronic gases

On 22 Jan., 2014, Liming Research Institute of Chemical Industry (Liming Research Institute, belongs to China National Chemical Corporation), announced that it had signed a cooperation agreement with South Korea-based Daesung Industrial Gases Co., Ltd. (Daesung) on 21 Jan., 2014. They would jointly establish a company named Luoyang Liming & Daesung Fluorine Chemical Co., Ltd. (Liming & Daesung Fluorine Chemical). Of this, Liming Research Institute and Dasesung will hold a share of 60% and 40% respectively, According to China Fluoride Materials China Monthly Report 1402 issued by CCM.

The joint venture is located in Luoyang National New & High Tech Industry Development Zone, to construct a 1,000 t/a nitrogen fluoride (NF3) with an investment of USD44.85 million. It is the first Chinese-foreign NF3 project domestically. Liming & Daesung Fluorine Chemical will take full advantage of the new electrolysis technology developed by Liming Research Institute, which features with simple production process (only one step to produce NF3 ) and controllable production cost. The project will be launched in H1 2014, and put into operation in June 2015, with an estimated revenue of USD29.30 million.

NF3 produced in this project is mainly applied in semiconductor chips, flat-panel liquid-crystal displays and photovoltaic cells. According to the Catalogue for the Guidance of Industry Adjustment promulgated by the National Development and Reform Commission (NDRC) in 2011, it is one of the fluorine fine chemicals encouraged by the Chinese government. Also, it is a necessity for the items emphasized in the 12th Five-year Plan—electronics, integrated circuit and new chemical material.

Internationally, the consumption of NF3 has increased significantly by 20% annually in recent three years, causing a relatively tight supply. Moreover, leading multinational electronics enterprises like South Korea-based LG and SAMSUNG begin to establish their plants in China, strengthening the domestic demand for NF3. An insider from Liming Research Institute revealed that the capacity of NF3 would meet its estimated annual sales volume of 800-1,000 tonnes. It will claim about 30% market share in China and further be exported abroad.

It is of great significance for both Liming Research Institute and Daesung to jointly launch the electronic gas project. For one thing, Liming Research Institute can achieve the industrialization of fluorine electronic gas project by drawing support from Daesung in the fields like strong asset support, varied sales channels, and advanced management and operation mode. For another, Daesung can gain high-quality NF3 and maintain a stable supply.

Incidentally, Liming Research Institute is a R&D institute under China Haohua Chemical Group Co., Ltd. The institute focuses on the R&D of fluorine gas, of which NF3 reaches the international advanced level. Daesung is a famous supplier of varied industrial gases in South Korea with a strong distribution network, proving accessories for South Korea-owned enterprises like LG, SAMSUNG and Hyundai Motor Group.

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6. Jiangsu Meilan increases input in construction of advanced fluorine-contained material projects
7. Shanghai 3F to further develop fluorine deep-processing business
8. Liming Research Institute with Daesung to jointly develop fluorine electronic gases
9. Zhejiang Province to accelerate the construction of fluorite resources comprehensive utilization demonstration base in Suichang County
10. Juhua Group continues to increase its share in Zhejiang Juhua
11. Deyi New Material's record filling materials regarding a 5,000 t/a PVDF project approved by FECO
12. Dongyangguang Fluorine starts the phase construction of its 16,500 t/a fluoropolymer project
13. Dongyue Group predicts its 2013 profit and revenue to decline by no more than 40%
14. Huanxin Fluoro intends to be listed on Shenzhen Stock Exchange in 2015
15. Ningbo Juhua and ZRCC to further strengthen their cooperation
16. Chenguang R.I.C.I's fluorine-silicone material project gains further governmental support

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