D-REX Polymer Begins Commercial APAO Production at its Yeosu Plant

On April 6, 2023, DL Chemical made the announcement that their subsidiary, D-REX Polymer, held a ceremony to celebrate the completion of its new APAO Plant in Yeosu. D-REX Polymer is a joint venture formed in September 2021 by REXtac from the United States and DL Chemical from Korea to produce amorphous poly-alpha-olefin (APAO), an environmentally friendly hot melt adhesive.

Since its completion at the end of December of last year, D-REX Polymer has been using its cutting-edge 40,000-ton plant in the Yeosu industrial complex for trial production. On April 1, 2023, the subsidiary began commercial production for customer delivery and successfully completed test production to ensure perfect product supply.

The material known as APAO is a kind of hot melt adhesive that can be melted and bonded with heat. Due to its high self-adhesive strength and thermal stability, it is frequently utilized in industrial products like automotive interior and exterior materials that require the bonding of various plastic resins. APAO's low density also makes it possible to cover a larger area with the same amount of material.

D-REX Polymer's APAO, which is produced with the exclusive catalyst technology of REXtac, is highly recommended for consumer safety-sensitive products like diapers and sanitary pads due to its nearly absence of odors or volatile substances in comparison to other products on the market. Additionally, manufacturers of consumer goods that frequently come into contact with the human body, such as mattresses, filters, and special packaging, may find it to be an extremely desirable material.

D-REX Polymer's CEO, Manjung Kim, said: "Based on cutting-edge technology, D-REX Polymer can produce high-quality APAO products that satisfy a variety of customers' needs: to strengthen our position in the quickly expanding market for eco-friendly adhesive materials, we will develop new products, add to our product lineup, and concentrate on gaining new clients."

D-REX Polymer’s new APAO plant has the potential to significantly affect the domestic APAO market. With the capacity to produce up to 40,000 tons of APAO a year, this plant will be able to increase the supply of APAO available to South Korean downstream companies.

The increased availability of APAO could also reduce reliance on imports from other countries, which would be beneficial for the local economy. By sourcing locally, South Korean downstream companies could be better supported by the domestic industry. Furthermore, with reduced reliance on imports, South Korean downstream companies will be better protected against supply chain disruptions caused by political or economic instability.

Finally, the availability of APAO could lead to improved downstream product quality in South Korea. As the availability of APAO increases, it becomes easier for downstream companies to access higher-grade APAO that can provide better results in their products. This could lead to improved products that are better suited to meet customer needs.