announced its decision to build a 50,000-ton capacity greenfield Maleic Anhydride plant, to be located at its Morris, IL site.
The decision was made following a thorough evaluation of multiple organic and inorganic investment opportunities.
The Morris site is the Group’s largest site for unsaturated polyester resins.
It has ample space for expansion. The site benefits from cost-efficient logistics through its access to a rail spur and a dock for barges on the Illinois River.
The plant will serve Polynt-Reichhold’s consumption for composites and other maleic derivatives already produced in Europe and Asia. The company intends to create, in North America, the successful integrated business model it employs in Europe.
“For Maleic Anhydride, we evaluated options for purchasing an existing plant, but this proved to not be feasible. Therefore, we decided to go ahead and build our own Maleic Anhydride Plant," said Rosario Valido, group president and CEO.
Polynt-Reichhold is still evaluating its integration strategy for Phthalic Anhydride, the other chemistry included in the Strategic Integration Initiative. The company is considering integration with existing operations or the construction of a greenfield plant.
The Group owns the full technology and catalyst manufacturing for its Phthalic Anhydride business. The final decision about the next steps is expected before the year-end.
“For Phthalic Anhydride, we are in an earlier stage and different options are still on the table. We are committed to progress in integrating intermediates and resins," Valido said. "An investment in Phthalic Anhydride will strengthen our competitive position in the Americas while leveraging our proprietary technologies and deep experience operating intermediates facilities in Europe and Asia.”